Revenue and Profitability Trends
Examining the net sales figures, Gopal Iron Stl. recorded ₹3.12 crores in March 2019, which saw a modest increase to ₹3.59 crores in March 2020. However, the subsequent years reflected volatility, with sales plunging to ₹0.13 crores in March 2022 before rebounding to ₹4.19 crores in March 2024 and settling at ₹3.16 crores by March 2025. This erratic sales pattern indicates challenges in maintaining consistent market demand or operational capacity.
Operating profit margins have largely been negative, with the company posting an operating loss margin of -107.69% in March 2019 and a significant loss of -130.77% in March 2022. Margins improved somewhat in recent years but remained negative at -0.63% in March 2025. Correspondingly, profit after tax (PAT) margins mirrored this trend, swinging from a robust positive margin of 326.6% in 2019—likely influenced by exceptional items—to negative territory in most subsequent years, including -0.63% in the latest fiscal year.
Earnings per share (EPS) followed a similar trajectory, with a high of 20.71 in March 2019, declining sharply to negative values in the years following, reaching -0.04 in March 2025. This reflects the company’s struggle to generate consistent profitability despite occasional positive results.
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Cost Structure and Operating Expenses
The company’s expenditure profile reveals that raw material costs have been a significant component, with ₹2.97 crores recorded in March 2025 and ₹4.13 crores in March 2024. Purchase of finished goods also contributed notably in earlier years, particularly ₹2.77 crores in March 2019, but this expense diminished in recent years. Employee costs remained relatively low, fluctuating between ₹0.02 crores and ₹0.23 crores over the period.
Other expenses showed a downward trend from ₹2.24 crores in March 2020 to ₹0.19 crores in March 2025, indicating some cost control efforts. Despite these measures, total expenditure excluding depreciation consistently exceeded operating income, resulting in operating losses in most years.
Balance Sheet and Financial Position
On the balance sheet front, shareholder funds have shown gradual improvement, rising from a negative ₹0.39 crores in March 2020 to a positive ₹0.89 crores in March 2025. This recovery is a positive sign, reflecting efforts to strengthen the company’s net worth. Total liabilities have decreased from ₹3.06 crores in March 2020 to ₹2.76 crores in March 2025, signalling some deleveraging.
Long-term borrowings stood at ₹0.53 crores in March 2025, up from ₹0.17 crores in March 2021, with secured loans introduced only in the latest fiscal year. Current liabilities have remained relatively stable around ₹1.29 crores. Total assets have marginally decreased from ₹3.06 crores in March 2020 to ₹2.76 crores in March 2025, with net block assets steady at ₹0.23 crores throughout.
Cash Flow and Liquidity
Cash flow data is limited, but available figures for March 2020 indicate a positive cash flow from operating activities of ₹3.00 crores, offset by investing outflows of ₹2.00 crores, resulting in a neutral net cash position. Subsequent years show no significant cash flow movements, suggesting a stable but constrained liquidity position.
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Summary and Outlook
Overall, Gopal Iron Stl.’s historical performance reflects a company grappling with inconsistent sales and profitability challenges over the past six years. While the fiscal year 2019 showed an exceptional profit, likely due to one-off items, subsequent years have been marked by losses and negative margins. The recent improvement in shareholder funds and some stabilisation in liabilities offer cautious optimism, but the company’s ability to sustain revenue growth and return to consistent profitability remains uncertain.
Investors should weigh these factors carefully, considering the company’s volatile earnings and modest asset base. The absence of significant cash flow movements in recent years also suggests limited financial flexibility. Monitoring future quarterly results and strategic initiatives will be crucial to assess whether Gopal Iron Stl. can reverse its historical performance trends.
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