How has been the historical performance of JK Agri Genetics?

Revenue and Operating Performance

For the fiscal year ending 31 March 2025, JK Agri Genetics recorded total operating income of ₹161.79 crore, entirely derived from net sales as other operating income was nil. This revenue base underscores the company’s core business strength in agricultural genetics products. However, the cost structure weighed heavily on profitability. Raw material costs stood at ₹111 crore, representing a significant portion of total expenditure. Employee costs were also substantial at ₹33.45 crore, while other expenses aggregated to ₹37.54 crore. Notably, the company experienced a negative stock adjustment of ₹10.08 crore, indicating an increase in inventory levels during the year.

The total expenditure excluding depreciation amounted to ₹171.92 crore, exceeding operating income and resulting in an operating loss before other income of ₹10.13 crore. Other income contributed ₹5.11 crore, partially offsetting operating losses and bringing the operating profit (PBDIT) to a negative ₹5.02 crore. This translated into an operating profit margin of -6.26%, signalling margin pressures in the business.

Profitability and Margins

Interest expenses were recorded at ₹5.89 crore, while exceptional items contributed a positive ₹12.49 crore, resulting in a gross profit before depreciation and tax of ₹1.58 crore. Depreciation charges of ₹4.03 crore further impacted earnings, culminating in a loss before tax of ₹2.47 crore. After accounting for a marginal tax credit of ₹0.04 crore, the company reported a consolidated net loss of ₹2.51 crore for the year.

This loss translated into a negative earnings per share (EPS) of ₹-5.41 on a face value of ₹10 per share. The net profit margin stood at -1.55%, reflecting the company’s struggle to convert sales into bottom-line profitability during the period under review.

Balance Sheet and Financial Position

JK Agri Genetics maintained a strong equity base with shareholder’s funds of ₹107.48 crore, supported by reserves of ₹102.84 crore and equity capital of ₹4.64 crore. The company reported no long-term borrowings, indicating a debt-light capital structure. Short-term borrowings were minimal at ₹2 crore, contributing to total liabilities of ₹268.56 crore.

On the asset side, net block of fixed assets was ₹18.64 crore, supplemented by intangible assets under development valued at ₹17.92 crore. Current assets were robust at ₹231.15 crore, including ₹98.40 crore in current investments and ₹72.27 crore in inventories. Net current assets, inclusive of investments, stood at ₹42.73 crore, signalling adequate liquidity to meet short-term obligations.

Deferred tax liabilities amounted to ₹28.73 crore, and other long-term liabilities were marginal at ₹0.33 crore. Trade payables and other current liabilities combined to ₹185.23 crore, reflecting operational payables and obligations.

Cash Flow and Liquidity

The company generated positive cash flow from operating activities of ₹3 crore despite the net loss, aided by working capital changes that contributed ₹13 crore. Investing activities saw a cash outflow of ₹32 crore, likely reflecting capital expenditure or investments in intangible assets. Financing activities resulted in a cash outflow of ₹34 crore, possibly due to debt repayments or other financing adjustments.

Overall, JK Agri Genetics reported a modest net cash inflow of ₹1 crore during the year, with closing cash and cash equivalents at ₹5 crore, up from ₹4 crore at the start of the fiscal year. This indicates a stable liquidity position despite operational challenges.

Summary and Outlook

JK Agri Genetics’ financial performance for the year ending March 2025 highlights a period of margin contraction and net losses despite steady sales. The company’s cost base, particularly raw materials and employee expenses, exerted pressure on operating profitability. While exceptional items provided some relief, the overall earnings remained negative, reflected in a subdued EPS and negative profit margins.

On the balance sheet front, the company’s low debt levels and strong reserves provide a solid foundation. Healthy current assets and positive operating cash flows support liquidity, although significant investing and financing outflows suggest ongoing capital deployment and financial adjustments.

Investors analysing JK Agri Genetics should weigh the company’s operational challenges against its robust equity base and liquidity position. The current financial snapshot indicates a need for improved cost management and margin enhancement to return to sustained profitability.

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