Revenue and Operating Performance Trends
Examining the standalone annual results, Kesar Enterprise's net sales peaked at over ₹550 crores in the fiscal years ending March 2023 and 2021, with a notable dip to approximately ₹333.97 crores in March 2025. This decline represents a substantial contraction in top-line revenue compared to prior years. The absence of other operating income throughout the period underscores reliance solely on core sales activities.
Raw material costs have consistently formed the largest component of expenditure, scaling in line with revenue fluctuations. For instance, raw material costs dropped from over ₹470 crores in March 2023 to ₹235.01 crores in March 2025, mirroring the sales decline. Employee costs have remained relatively stable, hovering around ₹30-36 crores annually, while manufacturing expenses and other costs have shown minor variations.
Despite these cost controls, total expenditure excluding depreciation has generally tracked close to or above total operating income, culminating in operating losses in the latest fiscal year. The operating profit margin excluding other income swung from a positive 5.32% in March 2021 to a negative 12.07% in March 2025, signalling deteriorating operational efficiency.
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Profitability and Margins
The company’s operating profit (PBDIT) excluding other income swung dramatically, from a high of ₹29.15 crores in March 2021 to a loss of ₹40.30 crores in March 2025. Other income, which was significantly high in March 2021 and 2024, contributed to operating profit in those years but was negligible in others. Interest expenses have generally declined from ₹44.78 crores in March 2019 to ₹12.60 crores in March 2025, reflecting reduced borrowings.
Profit before tax and profit after tax have mirrored the operating trends, with the company posting losses in March 2023, 2022, and 2025, and profits in March 2021 and 2024. The latest fiscal year saw a net loss of ₹72.62 crores, translating to a negative PAT margin of 21.74%. Earnings per share have similarly fluctuated, with a peak EPS of 89.12 in March 2021 and a negative EPS of -7.2 in March 2025.
Balance Sheet and Financial Position
Kesar Enterprise’s shareholder funds have varied considerably, peaking at ₹191.74 crores in March 2024 before declining to ₹118.70 crores in March 2025. The company has successfully reduced its total debt from ₹64.36 crores in March 2020 to just ₹8 crores in March 2025, indicating deleveraging efforts. However, current liabilities remain high relative to current assets, resulting in negative net current assets consistently over the years.
Fixed assets, measured by net block, have remained fairly stable around ₹440-470 crores, while current assets have declined sharply from nearly ₹163 crores in March 2021 to ₹62.19 crores in March 2025. This contraction in liquidity is a concern, especially given the persistent negative working capital position.
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Cash Flow and Liquidity
Cash flow from operating activities has been inconsistent, with positive inflows in March 2021 and 2024 but a negative outflow of ₹5 crores in March 2025. Investing activities have generally been cash outflows, reflecting ongoing capital expenditure or investments. Financing activities have mostly been cash outflows, indicating debt repayments or other financing reductions.
The net cash inflow/outflow has fluctuated, with a net outflow of ₹9 crores in March 2025 following a small inflow in the previous year. Closing cash and cash equivalents have diminished significantly from ₹25.00 crores in March 2021 to just ₹1.15 crores in March 2025, highlighting tightening liquidity.
Summary
Overall, Kesar Enterprise’s historical performance reveals a company that has faced considerable operational and financial challenges in recent years. While it achieved strong revenue and profitability in select years, recent declines in sales, operating losses, and negative net margins raise concerns. The company’s efforts to reduce debt are positive, but persistent negative working capital and shrinking cash reserves suggest liquidity pressures. Investors should carefully weigh these factors alongside market conditions when considering Kesar Enterprise’s prospects.
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