How has been the historical performance of Kamadgiri Fash.?

Nov 24 2025 10:53 PM IST

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Kamadgiri Fash. has shown a positive financial trajectory over the past three years, with net sales increasing from 139.91 Cr in March 2021 to 280.89 Cr in March 2023, and profitability improving significantly, culminating in a profit after tax of 1.48 Cr in March 2023. The company also reversed negative cash flow, achieving 16.00 Cr in operating cash flow in March 2023.

Revenue and Profitability Trends

Over the three fiscal years ending March 2023, Kamadgiri Fash. has seen its net sales nearly double, rising from ₹139.91 crores in March 2021 to ₹280.89 crores in March 2023. This significant increase reflects a robust expansion in the company's operational scale. Despite this growth, the operating profit margin excluding other income has remained relatively stable, hovering around 5%, with a slight dip from 5.66% in March 2022 to 5.17% in March 2023. The gross profit margin has improved from a negative margin in 2021 to a positive 2.73% in 2023, indicating better cost management and pricing power.

Profit after tax (PAT) has shown a remarkable turnaround, moving from a loss of ₹5.79 crores in March 2021 to a positive ₹1.48 crores in March 2023. Earnings per share (EPS) have similarly improved from a negative ₹9.86 to ₹2.52 over the same period, signalling enhanced shareholder value. However, the PAT margin remains modest at 0.53%, suggesting room for further profitability enhancement.

Cost Structure and Expenses

The company’s raw material costs have increased in line with sales growth, rising from ₹57.70 crores in 2021 to ₹140.78 crores in 2023. Purchases of finished goods also saw a steady rise, reflecting increased production or inventory stocking. Employee costs have fluctuated slightly but remained within a controlled range, decreasing from ₹33.74 crores in 2022 to ₹30.08 crores in 2023, which may indicate operational efficiencies or workforce optimisation.

Other expenses have nearly doubled from ₹29.09 crores in 2021 to ₹52.94 crores in 2023, which could be attributed to increased administrative or selling costs as the company scales. Despite these rising costs, the company has maintained a positive operating profit before depreciation and interest, underscoring effective cost management.

Balance Sheet and Financial Position

Kamadgiri Fash.’s shareholder funds have grown steadily from ₹33.28 crores in 2021 to ₹35.81 crores in 2023, supported by accumulated reserves. The book value per share has also improved from ₹56.69 to ₹61.01, reflecting enhanced net asset value per share. Total liabilities have decreased from ₹172.70 crores in 2022 to ₹152.99 crores in 2023, indicating a reduction in overall debt and obligations.

Long-term borrowings have declined from ₹16.31 crores in 2022 to ₹12.41 crores in 2023, while short-term borrowings have remained relatively stable around ₹48 crores. This suggests a cautious approach to long-term debt management, although the company continues to carry a significant short-term debt load. Total debt has reduced from ₹64.16 crores in 2022 to ₹60.88 crores in 2023, which is a positive sign for financial stability.

Cash Flow and Liquidity

Cash flow from operating activities has improved markedly, turning positive at ₹16 crores in 2023 after a negative ₹2 crores in 2022. This improvement reflects better working capital management and operational cash generation. Investing activities have remained minimal, with a small positive cash flow in 2023, while financing activities show a net outflow of ₹17 crores, possibly due to debt repayments or dividend payments.

The company’s cash and bank balances have increased to ₹2.68 crores in 2023 from negligible amounts in previous years, enhancing liquidity. Net current assets have also improved, indicating a stronger short-term financial position.

Summary of Historical Performance

In summary, Kamadgiri Fash. has exhibited a strong recovery from losses in 2021 to profitability in recent years, supported by substantial revenue growth and improved operational efficiency. The company has managed to contain costs relative to sales, maintain stable margins, and strengthen its balance sheet by reducing long-term debt and increasing reserves. Cash flow improvements further bolster its financial health, although profitability margins remain modest, signalling potential for future growth and margin expansion.

Investors should note the company’s cautious debt management and improving liquidity, which provide a foundation for sustainable operations. However, the relatively low PAT margin and ongoing expenses growth suggest that Kamadgiri Fash. will need to continue focusing on cost control and margin enhancement to deliver stronger returns.

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