Revenue and Operating Performance Trends
Examining Hemo Organic’s net sales reveals a modest beginning with ₹0.05 crore in March 2019, followed by a peak of ₹0.28 crore in March 2020. Subsequently, sales stagnated at minimal levels through March 2021 to March 2024, hovering around ₹0.01 crore or less. However, the fiscal year ending March 2025 saw a remarkable jump to ₹2.41 crore, signalling a substantial increase in business activity.
Total operating income mirrored this pattern, with negligible figures until the recent surge in March 2025. Other operating income remained consistently at zero throughout the period, indicating reliance solely on core sales for revenue generation.
Cost structures have been dominated by the purchase of finished goods, which escalated sharply to ₹3.62 crore in March 2025 from negligible amounts in prior years. The company also recorded a significant negative change in stocks of ₹-1.42 crore in the latest year, which may reflect inventory adjustments aligned with increased sales. Employee costs remained relatively stable at around ₹0.03 to ₹0.04 crore annually, while other expenses showed a gradual increase, reaching ₹0.23 crore in March 2025.
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Profitability and Margins
Operating profit before depreciation, interest and tax (PBDIT) excluding other income remained negative for most years, with losses ranging from ₹-0.02 crore to ₹-0.25 crore. The exception was March 2025, where a small positive operating profit of ₹0.02 crore was recorded, supported by other income of ₹0.07 crore. This translated into a marginal gross profit margin of 0.83% in the latest year, a significant improvement from deeply negative margins in previous years.
Profit before tax followed a similar trend, with losses in all years except March 2025, which posted a modest profit of ₹0.03 crore. Notably, the tax figure for March 2025 was negative at ₹-0.14 crore, contributing to a positive profit after tax of ₹0.16 crore. This resulted in a positive PAT margin of 6.64%, a stark contrast to the substantial losses and negative margins seen in prior years.
Earnings per share (EPS) reflected this turnaround, moving from negative values as low as ₹-0.75 in March 2024 to a positive ₹0.46 in March 2025, indicating improved profitability on a per-share basis.
Balance Sheet and Financial Position
Hemo Organic’s balance sheet reveals persistent challenges with shareholder’s funds remaining negative or near zero for most years, culminating in a slight negative net worth of ₹-0.15 crore in March 2025. The company’s equity capital remained steady at ₹3.47 crore throughout the period, but reserves have been negative, reflecting accumulated losses.
Long-term borrowings increased significantly to ₹1.23 crore in March 2025 from negligible levels in earlier years, indicating increased reliance on debt financing. Current liabilities also rose sharply to ₹3.65 crore in the latest year, driven largely by trade payables of ₹3.63 crore, which may reflect extended credit terms or delayed payments.
On the asset side, total assets grew to ₹4.70 crore in March 2025, primarily due to increases in current assets such as inventories and sundry debtors, which stood at ₹1.42 crore and ₹2.52 crore respectively. The company held no fixed assets or non-current investments during the period, indicating a lean asset base focused on current operations.
Cash Flow Overview
Cash flow data is limited but indicates a negative operating cash flow of ₹-1.00 crore in March 2024, with no significant investing or financing cash flows reported in recent years except a financing inflow of ₹1.00 crore in the same year. Closing cash and cash equivalents were minimal, suggesting tight liquidity conditions.
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Summary and Outlook
Overall, Hemo Organic’s historical performance has been characterised by low and volatile revenues, persistent losses, and a fragile balance sheet. The fiscal year ending March 2025 marks a notable improvement with a significant rise in sales, a return to profitability, and better margins. However, the company continues to face challenges related to negative reserves, increased borrowings, and elevated current liabilities.
Investors should weigh the recent positive signals against the company’s historical struggles and monitor future quarters for sustained growth and financial stability. The turnaround in earnings and operating profit in the latest year could indicate the beginning of a recovery phase, but cautious optimism is advised given the company’s overall financial position.
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