Revenue and Profitability Overview
For the fiscal year ending March 2025, Epuja Spiritech reported total operating income of ₹8.65 crore, entirely derived from net sales, with no other operating income recorded. The company’s expenditure, excluding depreciation, stood at ₹8.40 crore, resulting in a narrow operating profit before other income of ₹0.25 crore. Including other income of ₹0.07 crore, the operating profit (PBDIT) rose slightly to ₹0.32 crore.
Interest and exceptional items were negligible, with no reported costs, leading to a gross profit before depreciation and tax of ₹0.32 crore. Depreciation charges were minimal, and profit before tax was recorded at ₹0.16 crore. The absence of tax expenses and provisions meant the profit after tax closely mirrored the pre-tax figure, at ₹0.15 crore. This translated into a modest earnings per share (EPS) of ₹0.02, reflecting the company's limited scale of profitability.
Margins remained slim, with an operating profit margin excluding other income at 2.89%, a gross profit margin of 3.7%, and a profit after tax margin of 1.73%. These figures indicate tight cost controls but also highlight the challenges in generating substantial profitability within the current operational framework.
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Asset and Liability Position
On the balance sheet front, Epuja Spiritech's total assets and liabilities both stood at ₹21.03 crore as of March 2025, reflecting a balanced financial structure. Shareholder’s funds amounted to ₹19.66 crore, comprising equity capital of ₹8.55 crore and reserves of ₹3.61 crore. The company maintained a low level of debt, with total borrowings of ₹0.90 crore, all unsecured and classified as long-term liabilities.
Non-current assets were valued at ₹4.72 crore, primarily consisting of net block assets of ₹4.24 crore and minor investments and loans. Current assets were significantly higher at ₹16.31 crore, driven by inventories of ₹6.40 crore and sundry debtors of ₹8.57 crore, indicating a substantial working capital investment. Cash and bank balances were minimal at ₹0.29 crore, suggesting limited liquidity buffers.
Current liabilities were contained at ₹0.47 crore, including trade payables and provisions, supporting a healthy net current asset position of ₹15.84 crore. The company’s book value per share was ₹1.42, signalling a reasonable equity cushion relative to its share capital.
Cash Flow and Working Capital Dynamics
Epuja Spiritech’s cash flow statement for the year showed a negative cash flow from operating activities of ₹3.00 crore, primarily due to adverse changes in working capital. This outflow was partially offset by financing activities, which contributed ₹2.00 crore, resulting in a net cash outflow of ₹1.00 crore for the period. The company started the year with ₹1.00 crore in cash and cash equivalents but ended with a negligible balance, reflecting tight cash management challenges.
The negative operating cash flow highlights the strain on liquidity, likely driven by increased inventory and receivables, which may require close monitoring to ensure sustainable operations going forward.
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Summary and Investor Considerations
In summary, Epuja Spiritech’s historical performance for the year ended March 2025 reflects a company operating at a modest scale with limited profitability and tight margins. The balance sheet shows a conservative capital structure with low debt and a strong equity base, but working capital management and cash flow remain areas of concern due to negative operating cash flows and minimal liquidity.
Investors analysing Epuja Spiritech should weigh the company’s stable but low-margin earnings against its working capital demands and cash flow constraints. The absence of significant tax liabilities and depreciation expenses provides some relief, yet the overall financial profile suggests cautious optimism with a need for operational improvements to enhance profitability and cash generation.
Given these factors, potential stakeholders may consider monitoring future quarterly results for signs of improved operational efficiency and cash flow management before committing to a long-term investment.
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