Revenue and Profitability Overview
For the fiscal year ending March 2025, Manorama Indust. reported net sales of ₹770.84 crores, with no additional operating income, indicating a focused revenue stream from core operations. The company’s total operating income matched net sales, underscoring the absence of significant non-operating revenues. Raw material costs accounted for nearly half of the operating income at ₹373.52 crores, reflecting the company’s material-intensive business model.
Other operating expenses, including employee costs of ₹49.99 crores and other expenses amounting to ₹136.77 crores, contributed to total expenditure (excluding depreciation) of ₹584.44 crores. Despite these costs, Manorama Indust. achieved an operating profit before depreciation, interest, and other income (PBDIT excl. other income) of ₹186.40 crores, translating to an operating profit margin of 24.18%—a commendable figure indicating operational efficiency.
Including other income of ₹21.00 crores, the operating profit (PBDIT) rose to ₹207.40 crores. After accounting for interest expenses of ₹39.19 crores and depreciation of ₹22.13 crores, the company’s profit before tax stood at ₹146.08 crores. Following tax provisions of ₹36.29 crores, the consolidated net profit was ₹109.79 crores, yielding a profit after tax margin of 14.24%. Earnings per share (EPS) were reported at ₹18.42, reflecting solid returns for shareholders.
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Balance Sheet and Capital Structure
Manorama Indust.’s consolidated balance sheet reveals shareholder’s funds of ₹459.72 crores, supported by equity capital of ₹11.92 crores and reserves of ₹447.80 crores. The company maintains a moderate level of long-term borrowings at ₹42.85 crores, all secured, while short-term borrowings are significantly higher at ₹437.98 crores. Total liabilities amount to ₹983.32 crores, balanced against total assets of the same value, indicating a well-structured financial position.
On the asset side, net block of fixed assets stands at ₹174.76 crores, with additional capital work in progress and intangible assets under development. Current assets are substantial at ₹790.18 crores, largely driven by inventories valued at ₹550.48 crores and cash and bank balances of ₹98.35 crores. The company’s net current assets total ₹316.56 crores, providing adequate liquidity to meet short-term obligations.
Cash Flow and Financial Health
Cash flow analysis for the year shows a profit before tax of ₹146.00 crores, adjusted by non-cash items amounting to ₹69.00 crores. However, changes in working capital resulted in a significant outflow of ₹243.00 crores, leading to a negative cash flow from operating activities of ₹56.00 crores. Investing activities also saw an outflow of ₹33.00 crores, while financing activities generated ₹92.00 crores, culminating in a modest net cash inflow of ₹2.00 crores by the year-end.
The company’s book value per share is ₹77.14, reflecting a strong net asset base relative to its equity. Despite the working capital challenges, the overall financial position remains stable, supported by consistent profitability and a balanced debt profile.
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Conclusion: A Solid Historical Performance with Growth Potential
Manorama Indust.’s historical financial performance reflects a company with strong revenue generation capabilities, efficient cost management, and healthy profitability margins. The balance sheet indicates a prudent capital structure with manageable borrowings and a robust asset base. While cash flow from operations faced headwinds due to working capital demands, the company’s overall liquidity and financing activities have maintained stability.
Investors analysing Manorama Indust. will note the company’s consistent earnings and respectable margins, which provide a foundation for future growth. The earnings per share and book value per share metrics further underscore the value proposition for shareholders. As the company navigates its working capital cycle and leverages its operational strengths, it remains well-positioned within its sector.
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