Revenue and Profitability Trends
Over the past seven years, Cinevista's net sales have exhibited considerable volatility. The company recorded its peak revenue in the fiscal year ending March 2020, with net sales reaching ₹22.55 crores. However, this was followed by a sharp decline, with revenues plummeting to ₹0.44 crores by March 2024 before a partial recovery to ₹11.54 crores in March 2025. This erratic revenue pattern reflects operational challenges and market fluctuations impacting the media and entertainment sector.
Profitability has been a persistent concern. Operating profit margins, excluding other income, swung from a positive 9.67% in March 2020 to deeply negative figures in subsequent years, reaching a low of -4832.5% in March 2023. The company has consistently reported operating losses since March 2021, with the operating profit (PBDIT) excluding other income declining to -₹18.05 crores in March 2025.
Net profit margins have mirrored this trend, with the company posting losses every year since March 2019. The consolidated net loss widened significantly to ₹31.62 crores in March 2025, compared to a loss of ₹1.99 crores in March 2019. Earnings per share (EPS) have correspondingly deteriorated, falling from -₹0.35 in March 2019 to -₹5.5 in March 2025, underscoring the financial strain on shareholders.
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Cost Structure and Expenditure
Cinevista's cost profile has been marked by high expenditure relative to income. Total expenditure excluding depreciation surged to ₹39.46 crores in March 2023, far exceeding the total operating income of ₹0.80 crores that year. Raw material costs and other expenses have been significant contributors to this imbalance. Notably, the company recorded a substantial increase in stocks in recent years, with an increase of ₹16.76 crores in March 2025 and ₹27.50 crores in March 2023, which may reflect inventory management challenges.
Employee costs have remained relatively stable, fluctuating between ₹0.41 crores and ₹2.18 crores over the years. Interest expenses have also been a considerable burden, rising to ₹7.49 crores in March 2023 before moderating to ₹3.76 crores in March 2025. These financial pressures have contributed to the negative gross and net profit margins observed consistently since 2021.
Balance Sheet and Financial Position
The company's balance sheet reveals a contraction in shareholder funds from ₹148.96 crores in March 2020 to ₹50.52 crores in March 2025, reflecting accumulated losses and erosion of reserves. Total reserves have turned negative, standing at -₹51.69 crores in March 2025 compared to positive reserves of ₹46.77 crores in March 2019. This deterioration signals financial distress and reduced net worth.
Long-term borrowings have fluctuated significantly, peaking at ₹77.56 crores in March 2023 before declining to ₹24.58 crores in March 2025. The company’s total debt stood at ₹25.06 crores in March 2025, down from ₹78.20 crores in March 2023, indicating some deleveraging efforts. However, current liabilities remain substantial at ₹70.50 crores in March 2025, closely matching current assets of ₹111.86 crores, resulting in net current assets of ₹41.36 crores.
Cash Flow and Liquidity
Cinevista's cash flow from operating activities has been inconsistent, with a positive inflow of ₹2 crores in March 2025 following negative cash flows in prior years. Investing activities have generally been modest, with a notable outflow of ₹6 crores in March 2024. Financing activities have varied, including a significant inflow of ₹13 crores in March 2024 and an outflow of ₹2 crores in March 2025. The closing cash and cash equivalents stood at ₹1 crore in March 2025, indicating limited liquidity buffers.
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Summary and Outlook
In summary, Cinevista's historical performance has been characterised by significant revenue volatility, persistent operating losses, and a weakening financial position. Despite some recent improvements in revenue and debt reduction, the company continues to face challenges in restoring profitability and strengthening its balance sheet. Investors should carefully consider these factors alongside sector dynamics before making investment decisions.
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