Revenue and Operating Performance
Emerald Leisures reported net sales of ₹15.00 crores in the fiscal year ending March 2025, a slight decline from ₹15.79 crores in the previous year. The absence of other operating income in both years kept total operating income aligned with net sales. Despite this modest revenue base, the company faced significant cost pressures. Raw material costs surged sharply to ₹24.50 crores in March 2025 from ₹3.01 crores a year earlier, while the increase in stocks showed a substantial negative adjustment, reflecting inventory build-up or valuation changes.
Employee costs rose marginally to ₹2.09 crores, and other expenses remained steady at around ₹5.9 crores. Total expenditure excluding depreciation edged up slightly to ₹10.63 crores from ₹10.31 crores. Operating profit before depreciation and interest (PBDIT) excluding other income declined to ₹4.37 crores from ₹5.48 crores, with overall operating profit falling to ₹4.60 crores from ₹6.28 crores, signalling a contraction in operational efficiency.
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Profitability and Margins
Despite operational profits, the company’s profitability was severely impacted by high interest expenses, which remained elevated at ₹13.21 crores in March 2025, only marginally lower than ₹13.55 crores the previous year. This led to a gross loss before depreciation and tax of ₹8.61 crores, worsening from a loss of ₹7.27 crores in the prior year. Depreciation charges were slightly reduced to ₹2.19 crores.
Consequently, Emerald Leisures posted a net loss after tax of ₹10.80 crores in March 2025, deepening from a loss of ₹9.73 crores in March 2024. Earnings per share reflected this negative trend, with a diluted EPS of -₹7.47 compared to -₹6.98 previously. Operating profit margins contracted from 34.71% to 29.13%, while the net profit margin deteriorated sharply to -72.0% from -61.62%, underscoring the company’s ongoing struggle to generate sustainable profits.
Balance Sheet and Financial Position
Emerald Leisures’ balance sheet reveals a stressed financial position. Shareholder’s funds were negative at ₹-75.55 crores as of March 2025, reflecting accumulated losses and negative reserves of ₹-83.06 crores. The company’s total debt burden stood at ₹135.87 crores, comprising long-term borrowings of ₹58.36 crores and short-term borrowings of ₹77.50 crores, indicating significant leverage.
On the asset side, net block value was ₹60.37 crores, supported by non-current assets of ₹63.42 crores. Current assets were limited to ₹24.74 crores, with inventories accounting for a substantial portion at ₹22.97 crores. Net current assets were negative at ₹-69.58 crores, signalling liquidity constraints. The book value per share was deeply negative at ₹-69.3, reflecting the company’s eroded net worth.
Cash Flow Analysis
Cash flow from operating activities was negative at ₹-18.00 crores, driven by adverse changes in working capital amounting to ₹-22.00 crores. There was no cash flow from investing activities, while financing activities provided an inflow of ₹18.00 crores, balancing the net cash position to zero at the fiscal year-end. This pattern highlights the company’s reliance on external financing to sustain operations amid operational cash deficits.
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Summary of Historical Performance
In summary, Emerald Leisures has faced a difficult period characterised by declining sales, rising costs, and persistent losses. The company’s operating margins have contracted, and high interest expenses have exacerbated net losses. Its balance sheet shows significant leverage and negative net worth, while cash flows remain under pressure, necessitating external financing to maintain liquidity. These factors collectively indicate that Emerald Leisures has yet to achieve financial stability or profitability in recent years.
Investors should carefully consider these financial challenges alongside the company’s operational prospects before making investment decisions.
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