Revenue and Profitability Trends
Over the three-year period ending March 2025, Cedaar Textile’s net sales increased from ₹160.25 crores in March 2023 to ₹207.87 crores in March 2025, reflecting a compound growth trend. This rise in sales was accompanied by a corresponding increase in total operating income, which stood at ₹207.87 crores in the latest fiscal year.
Operating profit before depreciation and interest (PBDIT) also showed a positive trend, climbing from ₹15.64 crores in March 2023 to ₹30.25 crores in March 2025, indicating improved operational efficiency. The operating profit margin, excluding other income, rose from 9.76% to 14.55% over the same period, underscoring better cost management despite rising raw material costs.
Profit before tax nearly doubled from ₹6.45 crores in March 2023 to ₹16.30 crores in March 2025, while profit after tax increased from ₹4.59 crores to ₹12.04 crores. The PAT margin improved from 2.86% to 5.79%, signalling enhanced bottom-line performance. Earnings per share (EPS) followed suit, rising from ₹6.12 to ₹16.05, reflecting the company’s growing profitability on a per-share basis.
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Cost Structure and Expenses
The company’s raw material costs fluctuated, decreasing from ₹140.45 crores in March 2023 to ₹110.70 crores in March 2024 before rising again to ₹148.73 crores in March 2025. Despite this volatility, total expenditure excluding depreciation increased moderately from ₹144.61 crores to ₹177.62 crores over the three years. Employee costs rose from ₹9.53 crores to ₹15.07 crores, reflecting possible workforce expansion or wage adjustments.
Other expenses showed a significant increase, from ₹14.30 crores in March 2023 to ₹29.69 crores in March 2025, which may warrant closer scrutiny for investors assessing operational efficiency. Interest costs remained relatively stable, around ₹11 crores in the last two years, indicating consistent debt servicing obligations.
Balance Sheet and Financial Position
Cedaar Textile’s shareholder funds expanded substantially from ₹14.19 crores in March 2023 to ₹25.24 crores in March 2024, supported by a rise in reserves from ₹13.94 crores to ₹17.74 crores. The equity capital also increased notably from ₹0.25 crores to ₹7.50 crores, suggesting capital infusion or share restructuring during this period.
Total liabilities grew from ₹175.84 crores in March 2023 to ₹198.23 crores in March 2024, driven primarily by an increase in short-term borrowings from ₹58.24 crores to ₹73.47 crores. Long-term borrowings showed a slight decline, indicating some debt repayment or refinancing. The company’s net block of fixed assets rose steadily, reflecting ongoing investments in property, plant, and equipment.
Inventories more than doubled from ₹25.49 crores in March 2022 to ₹73.37 crores in March 2024, which could imply stockpiling or expansion in production capacity. Current assets also increased, supporting the company’s working capital needs, with net current assets improving from ₹8.24 crores to ₹21.23 crores.
Cash Flow and Liquidity
Cash flow from operating activities showed improvement, moving from negative ₹15 crores in March 2022 to a positive ₹4 crores in March 2024. This shift indicates better cash generation from core operations. However, cash flow from investing activities remained negative, reflecting ongoing capital expenditure. Financing activities fluctuated, with a net outflow of ₹2 crores in March 2024 after a significant inflow in previous years, suggesting changes in debt or equity financing strategies.
Overall, the company maintained a neutral net cash position over the period, with no significant cash inflows or outflows recorded at the closing balance.
Outlook and Considerations
Cedaar Textile’s historical performance reveals a company on a growth path with improving profitability and expanding asset base. While rising costs and liabilities warrant attention, the steady increase in earnings per share and operating margins provide a positive signal for investors. The company’s ability to generate positive operating cash flow after a period of negative cash flow is also encouraging from a liquidity perspective.
Investors should monitor the company’s expense trends and debt levels closely, alongside market conditions affecting the textile sector, to gauge future performance potential.
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