How has been the historical performance of Deepak Spinners?
Deepak Spinners showed significant growth from March 2009 to March 2012, with net sales increasing from 144.67 crore to 293.67 crore and profit after tax rising to 11.71 crore, reflecting a strong recovery and improved profitability. The operating profit margin reached 12.2%, and the earnings per share stood at 13.56 by March 2012.
Answer:The historical performance of Deepak Spinners shows a positive trend in net sales and profitability over the years leading up to March 2012.Breakdown:
Deepak Spinners experienced significant growth in net sales, increasing from 144.67 crore in March 2009 to 293.67 crore by March 2012. Other operating income also rose, contributing to a total operating income of 296.96 crore in March 2012, up from 144.91 crore in March 2009. The company's total expenditure, excluding depreciation, increased from 134.04 crore in March 2009 to 260.72 crore in March 2012, primarily driven by rising raw material costs, which reached 203.16 crore in March 2012. Despite these rising costs, the operating profit (PBDIT) improved from 11.48 crore in March 2009 to 40.18 crore in March 2012, reflecting an operating profit margin of 12.2%. Profit before tax also turned positive, reaching 14.56 crore in March 2012, compared to a loss of 4.31 crore in March 2009. Consequently, profit after tax rose to 11.71 crore in March 2012 from a loss of 2.19 crore in March 2009, resulting in an earnings per share (EPS) of 13.56. The company maintained a healthy PAT margin of 3.94% in March 2012, indicating improved profitability. Overall, Deepak Spinners demonstrated a strong recovery and growth trajectory in its financial performance over the analyzed period.
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