How has been the historical performance of Cybele Industrie?

Revenue and Profitability Trends

In the fiscal year ending March 2025, Cybele Industrie reported net sales of ₹20.43 crores, a steep decline from ₹35.48 crores recorded in the previous year. This drop of over 40% in top-line revenue has had a pronounced impact on the company’s earnings. Operating profit before depreciation, interest, and tax (PBDIT) swung from a modest profit of ₹0.83 crore in March 2024 to a substantial loss of ₹11.80 crores in March 2025. Including other income, the operating loss stood at ₹11.57 crores in the latest fiscal year, compared to a positive ₹1.74 crores a year earlier.

The gross profit margin also deteriorated sharply, moving from a marginal positive 1.47% in March 2024 to a negative 63.0% in March 2025. Similarly, the operating profit margin turned negative at -57.76%, signalling severe cost pressures and inefficiencies. The net loss after tax widened dramatically to ₹13.60 crores in March 2025 from a near breakeven loss of ₹0.07 crore in the prior year. Earnings per share reflected this downturn, plunging from a negligible loss to a substantial negative ₹12.71 per share.

Cost Structure and Expenditure Analysis

The company’s total expenditure excluding depreciation decreased slightly from ₹34.65 crores in March 2024 to ₹32.23 crores in March 2025. Raw material costs reduced from ₹26.40 crores to ₹22.33 crores, reflecting the lower sales volume. Employee costs remained relatively stable, with a marginal decline from ₹6.60 crores to ₹6.41 crores. Other expenses also decreased from ₹3.19 crores to ₹2.36 crores. Despite these cost reductions, the company was unable to offset the revenue decline, resulting in a significant operating loss.

Interest expenses increased slightly to ₹1.30 crores from ₹1.22 crores, adding to the financial burden. Depreciation charges decreased from ₹0.79 crores to ₹0.48 crores, but this was insufficient to improve profitability. The company reported no exceptional or extraordinary items in either year.

Balance Sheet and Financial Position

Cybele Industrie’s balance sheet reveals a contraction in shareholder’s funds from ₹59.39 crores in March 2024 to ₹45.79 crores in March 2025, reflecting accumulated losses and reduced reserves. Total reserves stood at ₹35.09 crores in the latest fiscal year, down from ₹48.70 crores. The company’s total liabilities decreased marginally from ₹81.84 crores to ₹77.98 crores.

Long-term borrowings increased significantly from ₹7.86 crores to ₹26.90 crores, indicating higher reliance on unsecured loans. Conversely, short-term borrowings declined sharply from ₹11.70 crores to ₹1.67 crores, suggesting a shift in debt structure. Total debt rose from ₹17.86 crores to ₹27.48 crores, increasing the company’s leverage and interest obligations.

On the asset side, net block values remained stable at around ₹61.37 crores, while current assets decreased from ₹15.16 crores to ₹11.12 crores. Inventories and sundry debtors both declined, consistent with lower sales activity. Cash and bank balances improved slightly to ₹1.10 crores from ₹0.30 crores, aided by financing activities.

Cash Flow and Liquidity

Cash flow from operating activities turned negative at ₹-6.00 crores in March 2025, compared to a neutral position in the previous year. This was driven by adverse changes in working capital, which increased by ₹4.00 crores, reversing the previous year’s improvement. Investing activities were neutral in the latest year, while financing activities contributed a positive ₹7.00 crores, likely reflecting new borrowings. The net cash inflow/outflow remained balanced, with closing cash and cash equivalents at ₹1.00 crore.

Summary and Outlook

Overall, Cybele Industrie’s historical performance over the last two fiscal years has been marked by a significant downturn in revenue and profitability, accompanied by increased financial leverage. The company’s operating and net margins have turned deeply negative, reflecting challenges in cost management and sales volume. The balance sheet shows increased long-term debt and reduced shareholder equity, which may constrain financial flexibility going forward.

While cash flow from financing activities has provided some liquidity support, operating cash flow remains under pressure. Investors should closely monitor the company’s efforts to stabilise revenues, improve margins, and manage debt levels to assess any potential turnaround in performance.

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