How has been the historical performance of Garware Marine?

Revenue and Profitability Trends

Garware Marine's net sales have exhibited notable volatility over the past seven years. Starting from ₹1.25 crore in March 2019, sales peaked at ₹1.58 crore in March 2022 before declining to ₹1.20 crore in March 2025. The dip in sales during the fiscal year ending March 2024 to ₹0.66 crore stands out as a significant contraction, followed by a recovery in the subsequent year. Throughout this period, the company reported no other operating income, indicating reliance solely on core sales for revenue generation.

Operating expenses, primarily employee costs and other expenses, have remained relatively stable, with employee costs ranging between ₹0.36 crore and ₹0.64 crore annually. Other expenses fluctuated, reaching a high of ₹0.96 crore in March 2022 and settling at ₹0.41 crore in March 2025. The absence of raw material costs and manufacturing expenses suggests a business model focused on services or trading rather than manufacturing.

Operating profit margins have mirrored the sales volatility. The margin peaked at 35.83% in March 2025, reflecting improved operational efficiency or cost control, while it plunged to a negative 18.18% in March 2024, indicating a challenging year. Profit after tax (PAT) margins followed a similar pattern, with a high of 35.83% in the latest fiscal year and a low of -10.61% in March 2024. Earnings per share (EPS) also fluctuated, reaching ₹0.75 in March 2025 after a negative EPS in the previous year.

Balance Sheet Strength and Asset Composition

Garware Marine's balance sheet has shown considerable growth in shareholder funds, rising from ₹5.75 crore in March 2021 to ₹17.95 crore in March 2025. This increase is largely driven by a substantial rise in reserves, which moved from a negative ₹0.02 crore in March 2021 to ₹12.19 crore in March 2025, signalling accumulated profits and retained earnings strengthening the company's net worth.

The company maintains a debt-free status, with no long-term or short-term borrowings reported throughout the period. This conservative capital structure reduces financial risk and interest burden, enhancing financial stability.

On the asset side, total assets have expanded from ₹6.34 crore in March 2021 to ₹19.17 crore in March 2025. Non-current investments have notably increased, reaching ₹13.68 crore in the latest fiscal year, indicating strategic deployment of surplus funds. Current assets have remained steady around ₹5 crore, with sundry debtors constituting the majority, reflecting consistent receivables management. Cash and bank balances have decreased over time, suggesting utilisation of liquid resources for investments or operations.

Cash Flow and Operational Efficiency

Cash flow data for Garware Marine is not available for the recent years, which limits detailed analysis of liquidity and cash management. However, the absence of borrowings and the growth in reserves imply that the company has been able to fund its operations and investments internally without resorting to external debt.

Operating profit before depreciation and interest (PBDIT) has shown recovery after a dip in March 2024, reaching ₹0.43 crore in March 2025. The company has maintained negligible interest and depreciation expenses, which supports a cleaner profit profile.

Summary and Investor Considerations

Over the last seven years, Garware Marine has experienced fluctuating sales and profitability, with a notable downturn in the fiscal year ending March 2024 followed by a strong rebound. The company’s ability to maintain a debt-free balance sheet and grow reserves significantly enhances its financial resilience. The increase in non-current investments suggests a strategic approach to asset allocation, while stable current assets and receivables indicate consistent operational management.

Investors should weigh the volatility in earnings and sales against the company’s strong equity base and absence of debt. The recent improvement in operating margins and profitability could signal a positive turnaround, but the historical fluctuations warrant cautious optimism. The lack of detailed cash flow information remains a gap for comprehensive liquidity assessment.

Overall, Garware Marine’s historical performance reflects a company navigating cyclical challenges with a conservative financial approach, positioning it for potential stability and growth in the coming years.

Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →