Revenue and Operating Performance Trends
Over the past six years, Gillanders Arbut's net sales have experienced notable volatility. The company recorded its peak sales in the fiscal year ending March 2019, with revenues exceeding ₹750 crores. However, this was followed by a sharp decline in subsequent years, with sales dropping to around ₹363 crores in March 2024 before rebounding to approximately ₹443 crores in March 2025. This fluctuation reflects the company's exposure to market dynamics and operational challenges.
Operating profit margins have mirrored this variability. The operating profit margin excluding other income peaked at 8.7% in March 2019 but fell into negative territory in March 2024, registering a loss margin of over 9%. The margin recovered to 5.8% by March 2025, indicating a return to operational profitability. Gross profit margins followed a similar pattern, with a low point in March 2024 and improvement thereafter.
Profit after tax (PAT) margins have also been inconsistent. The company posted a marginal PAT margin of 0.04% in March 2019, which deteriorated into negative margins in the years 2020 and 2021. A significant loss was recorded in March 2024, with a PAT margin of -13.38%, before recovering to a positive 6.03% in March 2025. Earnings per share (EPS) reflect this trend, swinging from a negative ₹22.78 in March 2024 to a positive ₹12.52 in March 2025.
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Balance Sheet and Financial Health
Gillanders Arbut's balance sheet reveals a gradual reduction in total liabilities from ₹856.66 crores in March 2020 to ₹510.02 crores in March 2025, signalling efforts to deleverage. Total debt has similarly declined from over ₹304 crores in 2020 to ₹139 crores in 2025, reflecting improved financial discipline. Shareholders' funds have remained relatively stable, fluctuating around ₹245 crores in the latest fiscal year.
The company's net block of fixed assets has decreased from ₹420.73 crores in March 2020 to ₹256.09 crores in March 2025, indicating asset optimisation or disposals. Capital work in progress has also reduced slightly, suggesting a slowdown or completion of capital projects.
Current assets have contracted from ₹393.18 crores in 2020 to ₹211.18 crores in 2025, with net current assets remaining negative in recent years. This points to ongoing working capital challenges. Cash and bank balances have diminished significantly, standing at less than ₹1 crore in March 2025, which may impact liquidity.
Cash Flow and Profitability Insights
Cash flow from operating activities has shown a declining trend, from ₹72 crores in March 2020 to ₹7 crores in March 2025, highlighting reduced cash generation capacity. Investing activities have mostly been outflows, except for a notable inflow in March 2021. Financing activities have consistently been outflows, reflecting debt repayments and reduced borrowings.
Profit before tax has oscillated widely, with losses in 2020 and 2021, a sharp negative in 2024, and a return to positive territory in 2025. The company’s ability to return to profitability after significant setbacks demonstrates resilience but also underscores the volatility in its earnings profile.
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Summary of Historical Performance
In summary, Gillanders Arbut's historical performance has been marked by significant fluctuations in revenue and profitability, with a peak in sales in 2019 followed by a downturn and recent recovery. The company has managed to reduce its debt burden and liabilities substantially over the last five years, improving its financial stability. However, challenges remain in working capital management and cash flow generation, which have weakened in recent years.
The return to positive earnings and operating margins in the latest fiscal year is a positive sign, suggesting that the company may be on a path to stabilisation and growth. Investors should weigh these factors carefully, considering both the volatility in past performance and the recent signs of recovery.
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