Revenue and Operating Income Trends
Net sales for Gopal Snacks have shown a gradual upward trajectory, rising from ₹1,352.16 crores in March 2022 to ₹1,458.64 crores by March 2025. This steady increase reflects the company’s ability to grow its core business despite competitive pressures. Other operating income, while relatively minor, increased notably in the latest fiscal year, contributing to total operating income of ₹1,468.02 crores in March 2025, up from ₹1,352.16 crores in March 2022.
Raw material costs have fluctuated, peaking at over ₹1,050 crores in March 2022 before declining to ₹1,047.83 crores in March 2025, indicating some cost control efforts. Meanwhile, employee costs have steadily increased from ₹77.24 crores in March 2022 to ₹113.37 crores in March 2025, reflecting possible expansion or wage inflation. Other expenses also rose consistently, reaching ₹149.15 crores in the latest year.
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Profitability and Margins
Operating profit before depreciation and interest (PBDIT) excluding other income peaked at ₹196.22 crores in March 2023 but declined to ₹105.21 crores by March 2025. Including other income, operating profit followed a similar pattern, reaching ₹200.11 crores in March 2023 before falling to ₹110.80 crores in March 2025. This decline is partly attributable to an exceptional item of ₹-47.19 crores recorded in the latest fiscal year.
Profit before tax dropped sharply from ₹151.85 crores in March 2023 to ₹27.04 crores in March 2025, with profit after tax following suit, falling from ₹112.37 crores to ₹19.00 crores over the same period. Correspondingly, earnings per share (EPS) declined from 9.02 to 1.52, reflecting the reduced profitability. Operating profit margins also contracted from 14.1% in March 2023 to 7.21% in March 2025, while PAT margins decreased from 8.07% to 1.3%.
Balance Sheet and Financial Position
Shareholders’ funds have grown substantially, rising from ₹177.66 crores in March 2022 to ₹404.79 crores in March 2025, supported by increasing reserves. The book value per share has nearly doubled over this period, reaching ₹32.48 in March 2025 from ₹14.26 in March 2022, indicating enhanced net asset value per share.
Gopal Snacks has successfully reduced its long-term borrowings from ₹79.35 crores in March 2022 to a mere ₹0.57 crores in March 2025, signalling a significant deleveraging effort. However, short-term borrowings remain elevated at ₹65.71 crores in March 2025, slightly higher than previous years. Total debt has thus decreased from ₹164.12 crores in March 2022 to ₹66.28 crores in March 2025.
On the asset side, net block values have increased steadily, reflecting ongoing capital investments, while capital work in progress surged notably in the latest year to ₹45.91 crores. Current assets have also expanded, with inventories rising to ₹156.64 crores and net current assets improving to ₹138.29 crores by March 2025.
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Cash Flow and Liquidity
Cash flow from operating activities has fluctuated, peaking at ₹121 crores in March 2023 before settling at ₹68 crores in March 2025. Investing activities have consistently been cash outflows, reflecting ongoing capital expenditure, with ₹82 crores spent in the latest year. Financing activities have mostly been cash outflows in recent years, including a ₹9 crore outflow in March 2025, indicating repayments or dividend payments.
Net cash inflow/outflow has been volatile, with a negative ₹23 crores recorded in March 2025, contrasting with positive inflows in prior years. Closing cash and cash equivalents stood at zero in March 2025, down from ₹24 crores the previous year, suggesting tighter liquidity.
Summary
Overall, Gopal Snacks has maintained steady revenue growth and strengthened its equity base over the past three years. However, profitability has been under pressure, particularly in the most recent fiscal year, due to exceptional charges and margin compression. The company has made significant strides in reducing long-term debt but continues to carry substantial short-term borrowings. Capital investments remain robust, supporting future growth potential, though cash flow management will be critical going forward.
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