Revenue and Profitability Growth
Gretex Corporate’s net sales have surged impressively, rising from a mere ₹1.15 crore in March 2020 to ₹258.86 crore by March 2025. This exponential growth reflects a strategic expansion in operations and market reach. Total operating income mirrored this trend, with no other operating income reported, indicating the core business as the primary revenue source.
Despite the rapid increase in sales, the company’s operating profit margin excluding other income has seen a significant contraction, dropping from a robust 30.87% in March 2021 to a marginal 0.53% in March 2025. This decline is largely attributable to the sharp rise in purchase of finished goods, which accounted for ₹243.74 crore in the latest fiscal year, up from zero in earlier years, suggesting a shift towards trading or distribution activities rather than manufacturing.
Operating profit (PBDIT) excluding other income peaked at ₹38.69 crore in March 2024 but fell drastically to ₹1.38 crore in March 2025. However, other income contributed ₹6.86 crore in the latest year, cushioning the overall operating profit to ₹8.24 crore. Profit before tax followed a similar pattern, declining from ₹45.72 crore in March 2024 to ₹5.04 crore in March 2025. Consequently, the consolidated net profit dropped sharply to ₹1.30 crore in March 2025 from ₹27.15 crore the previous year.
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Asset Base and Capital Structure
The company’s total assets have expanded substantially, from ₹8.38 crore in March 2020 to ₹270.31 crore in March 2025. This growth is supported by a significant increase in shareholder’s funds, which rose from ₹3.74 crore to ₹193.28 crore over the same period. Notably, reserves have grown from a negligible base to ₹173.78 crore, reflecting accumulated earnings and capital infusion.
Gretex Corporate 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, as evidenced by minimal interest expenses ranging between ₹0.18 crore and ₹0.56 crore annually.
Non-current investments have also increased markedly, reaching ₹139.12 crore in March 2025, indicating strategic deployment of surplus funds. The net block of fixed assets grew steadily to ₹31.47 crore, supporting operational capacity.
Cash Flow and Liquidity
Cash flow from operating activities has been volatile, with a negative ₹31 crore in March 2025 following a similar outflow in the previous year. This reflects working capital pressures, particularly due to increased inventory and trade payables. Investing activities showed a positive inflow of ₹1 crore in the latest year, reversing prior years’ outflows, while financing activities contributed ₹27 crore, likely from equity or other non-debt sources.
Despite these fluctuations, the company’s cash and bank balances remain stable at ₹17.25 crore as of March 2025, providing a reasonable liquidity buffer. The book value per share has appreciated significantly, from ₹3.24 in March 2020 to ₹82.02 in March 2025, underscoring value creation for shareholders.
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Summary and Outlook
Gretex Corporate’s historical performance reveals a company in transition, with rapid revenue growth accompanied by margin compression and fluctuating profitability. The absence of debt and strong equity base provide financial stability, while increased investments suggest a focus on long-term growth. However, the recent decline in operating margins and net profit warrants close monitoring by investors.
Overall, Gretex Corporate has evolved from a small-scale operation into a considerably larger entity, but the challenge remains to convert top-line growth into sustainable profitability. Investors should weigh the company’s expanding asset base and liquidity against the pressures on margins and cash flow before making investment decisions.
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