Revenue and Profitability Trends
Over the past seven years, Coastal Roadways’ net sales have demonstrated variability, peaking at ₹52.14 crores in the fiscal year ending March 2019 before experiencing a decline and subsequent stabilisation around the ₹40 crore mark in recent years. The fiscal year ending March 2025 recorded net sales of ₹41.00 crores, reflecting a modest increase from ₹38.24 crores in the previous year. Notably, the company has not reported any other operating income during this period, indicating reliance primarily on core business operations for revenue generation.
Operating profit before depreciation and interest (PBDIT) excluding other income has shown a gradual improvement, rising from ₹1.10 crores in March 2019 to ₹3.02 crores in March 2025. The operating profit margin, excluding other income, has also improved from a low base of 2.11% in 2019 to 7.37% in 2025, signalling enhanced operational efficiency. However, gross profit margins have fluctuated, peaking at 16.0% in 2023 before moderating to 8.41% in 2025, reflecting cost pressures, particularly in manufacturing expenses which remain the largest expenditure component.
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Cost Structure and Expense Management
Coastal Roadways’ cost structure is dominated by manufacturing expenses, which have consistently accounted for the majority of total expenditure excluding depreciation. These expenses decreased from ₹47.88 crores in 2019 to ₹34.88 crores in 2025, indicating some cost rationalisation efforts. Employee costs have seen a gradual increase, reaching ₹2.36 crores in 2025 from ₹1.87 crores in 2019, reflecting possible workforce expansion or wage inflation. Other expenses have remained relatively stable, averaging around ₹1 crore annually.
Interest expenses have significantly declined from ₹0.59 crores in 2019 to ₹0.09 crores in 2025, suggesting effective debt management and deleveraging. Exceptional items, which impacted profitability notably in 2023 and 2024, were absent in the latest fiscal year, contributing to a cleaner earnings profile.
Balance Sheet and Asset Quality
The company’s shareholder funds have grown steadily, rising from ₹11.60 crores in 2020 to ₹23.40 crores in 2025, supported by increasing reserves. Total liabilities have decreased from ₹26.34 crores in 2020 to ₹26.47 crores in 2025, with a marked reduction in long-term borrowings from ₹1.33 crores to nil, underscoring a stronger financial position. Deferred tax assets/liabilities have remained stable around ₹1.4 crores.
On the asset side, net block values have declined from ₹14.86 crores in 2020 to ₹7.56 crores in 2025, reflecting depreciation and possibly asset disposals. Non-current investments have increased substantially, reaching ₹6.23 crores in 2025 from a negligible base in earlier years, indicating diversification or strategic investments. Current assets have also improved, with cash and bank balances rising to ₹4.93 crores in 2025, enhancing liquidity.
Cash Flow and Earnings
Cash flow from operating activities has been positive in recent years, with ₹1 crore generated in 2025, although it has fluctuated historically. Investing activities have seen mixed cash flows, with a notable outflow in 2024 but inflows in other years, reflecting active asset management. Financing activities have generally been cash outflows, consistent with debt repayments and capital restructuring.
Profit after tax (PAT) has shown a recovery from a loss of ₹1.12 crores in 2019 to a profit of ₹1.47 crores in 2025. Earnings per share (EPS) have followed a similar trajectory, improving from negative ₹2.7 in 2019 to ₹3.54 in 2025, though with a peak of ₹11.93 in 2023. PAT margins have improved from negative territory to 3.59% in 2025, indicating a return to profitability and better cost control.
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Summary and Outlook
Coastal Roadways’ historical performance reveals a company that has navigated through periods of volatility with gradual improvement in profitability and financial health. While sales have not returned to the peak levels seen in 2019, the firm has managed to enhance operating margins and reduce debt, strengthening its balance sheet. The increase in reserves and shareholder funds further supports a stable foundation for future growth.
Investors should note the company’s consistent focus on cost management and deleveraging, which have contributed to improved earnings quality. However, the variability in cash flows and margins suggests that operational challenges remain. Continued monitoring of manufacturing expenses and investment activities will be crucial to assess sustained performance.
Overall, Coastal Roadways presents a case of steady recovery and financial discipline, positioning it as a company with potential for value creation in the transport services sector.
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