How has been the historical performance of Gratex Industrie?

Revenue and Profitability Trends

Over the past seven financial years, Gratex Industrie’s net sales have shown variability, peaking at ₹4.26 crores in March 2023 before moderating to ₹3.75 crores in March 2025. The company experienced a notable dip in sales in March 2021, with ₹1.87 crores, reflecting a challenging period, but rebounded strongly in subsequent years. Total operating income mirrored this trend, as other operating income remained nil throughout.

Operating profit before depreciation and interest (PBDIT) has remained relatively stable, fluctuating between ₹0.13 crores in March 2021 and ₹0.37 crores in March 2020 and 2023. The operating profit margin, excluding other income, ranged from a low of 6.52% in March 2024 to a high of 10.66% in March 2020, indicating the company’s ability to maintain reasonable operational efficiency despite sales volatility.

Profit after tax (PAT) has followed a similar pattern, with margins peaking at 4.61% in March 2020 and dipping to 1.07% in March 2021. Earnings per share (EPS) reflected these fluctuations, reaching a high of 0.63 in March 2023 before settling at 0.23 in March 2025. The company has consistently managed to remain profitable, albeit with modest margins.

Cost Structure and Expense Management

Raw material costs have been a significant component of total expenditure, rising from ₹1.10 crores in March 2019 to ₹1.65 crores in March 2025, reflecting both inflationary pressures and changes in production scale. Employee costs have also increased steadily, from ₹0.93 crores in March 2019 to ₹1.00 crore in March 2025, indicating investment in human resources despite sales fluctuations.

Other expenses have shown a gradual increase, reaching ₹0.97 crores in March 2025. Selling and distribution expenses remain minimal but consistent, suggesting a controlled approach to marketing and logistics. The company has maintained a tight grip on power and manufacturing costs, which have been negligible or zero in recent years.

Balance Sheet and Financial Position

Gratex Industrie’s shareholder funds have grown steadily from ₹3.09 crores in March 2020 to ₹3.64 crores in March 2025, supported by rising reserves that moved from a negative ₹0.11 crores in March 2019 to a positive ₹0.61 crores in March 2025. This improvement in net worth reflects retained earnings and prudent financial management.

The company’s total liabilities have remained relatively stable, around ₹4.09 crores in March 2025, with a low debt level of ₹0.05 crores, underscoring a conservative borrowing strategy. Long-term borrowings have decreased over the years, while current liabilities have also been managed effectively.

On the asset side, net block values have hovered around ₹1.04 crores in March 2025, showing modest capital investment and depreciation management. Inventories have increased from ₹0.83 crores in March 2020 to ₹2.28 crores in March 2025, possibly indicating stockpiling or expansion in product lines. Sundry debtors have declined from ₹1.52 crores in March 2020 to ₹0.36 crores in March 2025, suggesting improved receivables management.

Cash Flow and Liquidity

Cash flow data for the company indicates no significant inflows or outflows in operating, investing, or financing activities over the recent years, with closing cash and cash equivalents consistently at zero. This may imply a tightly managed working capital cycle or limited cash reserves, which investors should monitor closely.

Summary and Investor Considerations

Gratex Industrie’s historical performance reveals a company that has navigated fluctuating sales with consistent profitability and controlled expenses. Its operating margins, while modest, have remained positive, and the firm has steadily enhanced its net worth through retained earnings. The low debt levels and stable liabilities further contribute to a sound financial foundation.

However, the absence of significant cash reserves and the variability in sales and profit margins suggest that investors should weigh the company’s growth prospects against its operational risks. The increase in inventories alongside reduced receivables points to potential shifts in working capital dynamics that merit close attention.

Overall, Gratex Industrie presents a profile of cautious growth and financial prudence, making it a company to watch for those interested in small-cap industrial stocks with stable fundamentals.

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