Revenue and Profitability Trends
Over the fiscal years ending March 2023 to March 2025, Davin Sons Reta’s net sales exhibited a significant increase, rising from ₹3.83 crores in March 2023 to ₹13.53 crores in March 2025. This more than threefold growth in sales underscores the company’s expanding market presence and operational scale. Total operating income mirrored this trend, reflecting the absence of other operating income during this period.
Despite the surge in sales, the company maintained a relatively stable operating profit margin, with figures hovering around 18%, indicating effective cost management. Operating profit (PBDIT) excluding other income increased from ₹0.69 crores in March 2023 to ₹2.51 crores in March 2025, while the overall operating profit including other income reached ₹2.57 crores in the latest fiscal year.
Profit after tax (PAT) also showed a positive trend, growing from ₹0.57 crores in March 2023 to ₹1.66 crores in March 2025. The PAT margin remained consistent at approximately 12%, reflecting the company’s ability to convert revenue into net earnings efficiently despite fluctuations in expenses such as employee costs and purchase of finished goods.
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Cost Structure and Margins
The company’s expenditure profile reveals that purchase of finished goods constitutes the largest cost component, though it has slightly decreased from ₹10.10 crores in March 2024 to ₹9.36 crores in March 2025. Employee costs have risen steadily, reflecting possible expansion or wage adjustments, increasing from ₹0.28 crores in March 2023 to ₹1.03 crores in March 2025. Other expenses fluctuated but remained relatively low in absolute terms.
Gross profit margins have seen a mild contraction from 20.1% in March 2023 to 17.52% in March 2025, which may be attributed to changes in cost dynamics. Nevertheless, the operating profit margin has improved slightly, indicating operational efficiencies.
Balance Sheet Strength and Capitalisation
Davin Sons Reta’s balance sheet has strengthened considerably over the reviewed period. Shareholder’s funds surged from ₹1.09 crores in March 2023 to ₹15.96 crores in March 2025, driven by increases in both equity capital and reserves. The equity capital itself expanded from ₹0.11 crores to ₹5.26 crores, signalling fresh capital infusion or share issuance.
Total liabilities rose in line with asset growth, reaching ₹19.43 crores in March 2025 from ₹4.56 crores in March 2023. Notably, the company’s total debt decreased from ₹1.28 crores in March 2023 to ₹0.90 crores in March 2025, reflecting a reduction in long-term borrowings and a slight increase in short-term borrowings.
Asset composition shows a rise in net block from ₹0.10 crores to ₹1.19 crores, indicating capital expenditure on fixed assets. Current assets more than quadrupled, reaching ₹18.00 crores in March 2025, supported by substantial increases in cash and bank balances, sundry debtors, and inventories. This improvement in liquidity is further reflected in net current assets, which grew from ₹2.11 crores to ₹14.72 crores over the same period.
Cash Flow and Earnings Per Share
Cash flow from operating activities remained negative at ₹-1.00 crore for both March 2024 and March 2025, primarily due to adverse changes in working capital. However, the company’s financing activities generated significant cash inflows, particularly in March 2025, with ₹9.00 crores raised, resulting in a net cash inflow of ₹6.00 crores and a closing cash balance of ₹7.00 crores.
Earnings per share (EPS) showed some volatility, with basic EPS rising from ₹2.88 in March 2023 to ₹3.16 in March 2025, though it dipped in March 2024 to ₹4.47. Diluted EPS figures are less consistent, influenced by changes in share capital and other factors.
Book value per share has seen a robust increase, climbing from ₹5.54 in March 2023 to ₹30.33 in March 2025, reflecting the company’s enhanced net worth and capital base.
Outlook and Considerations
Overall, Davin Sons Reta’s historical performance reveals a company on a growth trajectory with improving financial health. The steady rise in revenues and profits, coupled with a stronger balance sheet and enhanced liquidity, positions the company favourably for future expansion. Investors should note the consistent operating margins and manageable debt levels as positive indicators of operational resilience.
However, the negative cash flow from operations suggests a need for careful working capital management going forward. Monitoring cost trends, particularly in employee expenses and purchase of finished goods, will be crucial to sustaining profitability.
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