How has been the historical performance of Hisar Spg. Mills?

Dec 03 2025 10:47 PM IST

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Hisar Spg. Mills has shown fluctuating financial performance, with net sales increasing to 44.88 Cr in March 2025 from 41.98 Cr in March 2024, while profit after tax rose to 2.93 Cr. Key metrics like operating profit and earnings per share also improved, indicating a positive trend despite some variability in sales over the years.

Revenue and Profit Trends

Examining the net sales figures, Hisar Spg. Mills recorded a rise from ₹30.48 crores in March 2019 to ₹44.88 crores by March 2025. Despite a dip in fiscal 2022-23 to ₹46.69 crores from a previous high, the overall trend reflects a robust recovery and growth in sales. The total operating income mirrors this pattern, with no other operating income reported, indicating reliance on core business activities.

Operating profit margins, excluding other income, have shown variability, peaking at 15.39% in 2018-19 and moderating to 12.19% in 2024-25. This suggests some pressure on operational efficiency but still maintaining a healthy margin above 10% in recent years. Profit after tax (PAT) margins have similarly fluctuated, reaching a high of 11.49% in 2021-22 before settling at 6.53% in 2024-25, reflecting the impact of various cost factors and market conditions.

Cost Structure and Margins

The company’s raw material costs have generally increased in line with sales, rising from ₹17.61 crores in 2018-19 to ₹22.62 crores in 2024-25. Employee costs and power costs have also seen gradual increases, reflecting inflationary pressures and operational scale. Manufacturing expenses have fluctuated but show an upward trend, indicating investments in production capabilities or rising input costs.

Despite these cost pressures, Hisar Spg. Mills has managed to sustain a gross profit margin above 10% in recent years, with a peak of 16.89% in 2021-22. The operating profit (PBDIT) excluding other income has generally trended upwards, reaching ₹5.47 crores in 2024-25, up from ₹4.69 crores in 2018-19, signalling improved operational profitability.

Balance Sheet and Financial Position

Shareholders’ funds have grown significantly, from ₹9.39 crores in 2018-19 to ₹22.26 crores in 2023-24, reflecting retained earnings and capital accumulation. The company’s total liabilities have increased moderately, with long-term borrowings rising to ₹2.03 crores in 2023-24 from ₹1.58 crores in 2018-19, indicating measured leverage.

Net block assets have seen a decline from ₹9.08 crores in 2021-22 to ₹5.44 crores in 2023-24, possibly due to depreciation outpacing capital expenditure. Inventories and current assets have increased steadily, supporting operational liquidity. The company maintains a conservative debt profile with total debt around ₹3.09 crores in 2023-24, which is manageable relative to equity.

Cash Flow and Earnings

Cash flow from operating activities has been positive in recent years, with ₹2 crores generated in 2023-24, supporting working capital needs and operational expenses. Investing activities have seen occasional outflows, notably in 2021-22, reflecting capital investments. Financing activities have been relatively stable, with minor repayments or borrowings.

Earnings per share (EPS) have shown volatility, peaking at 11.04 in 2021-22 before moderating to 7.83 in 2024-25. This reflects the company’s earnings variability but overall positive profitability. The book value per share has increased from ₹25.15 in 2018-19 to ₹53.72 in 2022-23, indicating growth in net asset value per share.

Summary of Historical Performance

Overall, Hisar Spg. Mills has exhibited a steady growth trajectory in sales and profitability over the past six years, despite some fluctuations in margins and earnings. The company’s ability to maintain positive operating and net profit margins, alongside a strengthening balance sheet and manageable debt levels, underscores its operational resilience. Cash flow generation remains consistent, supporting ongoing business needs and modest capital expenditure.

Investors should note the variability in earnings and margins, which may be influenced by raw material costs and market conditions. However, the upward trend in shareholders’ funds and book value per share suggests value accretion over time. The company’s financial discipline in managing costs and liabilities positions it well for sustainable growth in the textile sector.

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