Revenue and Profitability Trends
Indian Terrain's net sales have experienced notable fluctuations over the past seven years. The company recorded a peak in sales in the fiscal year ending March 2023, reaching ₹500.80 crores, followed by a sharp decline to ₹340.60 crores in March 2025. This drop represents a contraction of over 30% from the previous peak, signalling challenges in maintaining top-line growth.
Operating profit margins have mirrored this volatility. The firm posted healthy operating margins above 10% in fiscal 2019 and 2023, but these gains were offset by losses in other years, including a negative margin of -2.02% in the latest fiscal year. Profit after tax (PAT) margins have similarly swung, with a positive margin of 6.09% in 2019 turning into a loss of -12.52% by March 2025. Earnings per share (EPS) reflect this trend, moving from a positive ₹6.77 in 2019 to a negative ₹9.33 in 2025.
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Cost Structure and Expenses
The company's expenditure profile shows a consistent pattern of high costs relative to revenue. Purchase of finished goods remains the largest expense, peaking at ₹350.86 crores in 2023 before declining to ₹183.39 crores in 2025. Employee costs have remained relatively stable, hovering around ₹20-23 crores annually. Other expenses have increased steadily, reaching ₹113.20 crores in the latest fiscal year. These cost pressures have contributed to the erosion of operating profits.
Balance Sheet and Financial Position
Indian Terrain's balance sheet reflects a cautious approach to leverage, with total debt rising from ₹42.31 crores in 2020 to ₹86.17 crores in 2025. Shareholders' funds have decreased from ₹216.12 crores in 2020 to ₹182.82 crores in 2025, indicating some erosion of net worth. The book value per share has declined from ₹56.95 in 2020 to ₹35.91 in 2025, consistent with the company's profitability challenges.
On the asset side, net block values have decreased significantly from ₹53.50 crores in 2020 to ₹17.59 crores in 2025, suggesting asset disposals or depreciation outpacing capital expenditure. Current assets have also contracted from ₹362.54 crores in 2020 to ₹367.08 crores in 2025, with cash and bank balances improving to ₹43.67 crores in 2025 from a low base in earlier years.
Cash Flow and Liquidity
Cash flow from operating activities has been inconsistent, with positive inflows of ₹19 crores in 2025 but negative cash flows in 2024. Investing activities have generally seen modest inflows, while financing activities have mostly been outflows, reflecting debt repayments or capital restructuring. The net cash inflow of ₹12 crores in 2025 marks a slight improvement in liquidity position compared to prior years.
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Summary and Outlook
Indian Terrain's historical performance has been marked by significant volatility in revenue and profitability, with recent years showing a decline in sales and operating margins. The company has faced challenges in controlling costs and maintaining profitability, as reflected in negative earnings and shrinking book value per share. While the balance sheet remains moderately leveraged, the firm has managed to improve cash reserves and maintain liquidity in the latest fiscal year.
Investors should weigh these financial trends carefully, considering the cyclical nature of the apparel sector and the company's efforts to stabilise operations. The fluctuating earnings and margins suggest that Indian Terrain is navigating a challenging environment, with potential for recovery contingent on market conditions and operational efficiencies.
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