How has been the historical performance of Modi Rubber?
Modi Rubber has seen significant sales growth from INR 5.24 crore in Mar'19 to INR 29.20 crore in Mar'25, but it faces severe profitability challenges, with negative operating profits and consistent losses before tax, despite a positive consolidated net profit of INR 20.46 crore in Mar'25 due to associate profits. The company's total assets have increased, but so have liabilities, indicating rising debt levels and ongoing cash flow issues from core operations.
Answer:The historical performance of Modi Rubber shows significant fluctuations in key financial metrics over the years.Breakdown:
Modi Rubber's net sales have shown a remarkable increase from INR 5.24 crore in Mar'19 to INR 29.20 crore in Mar'25, indicating a strong upward trend in revenue generation. However, the total expenditure has also escalated, rising from INR 21.18 crore in Mar'19 to INR 49.74 crore in Mar'25, leading to negative operating profits, which have worsened from -15.94% in Mar'19 to -541.95% in Mar'25. The profit before tax has consistently been negative, with a loss of INR 9.35 crore reported in Mar'25 compared to a profit of INR 17.89 crore in Mar'19. Despite these losses, the consolidated net profit has shown a positive figure of INR 20.46 crore in Mar'25, primarily due to share in profit of associates. The company's total assets have increased from INR 725.55 crore in Mar'23 to INR 770.15 crore in Mar'25, while total liabilities have also risen, reflecting a growing debt level from INR 16.98 crore in Mar'24 to INR 17.24 crore in Mar'25. Cash flow from operating activities remains negative, indicating ongoing challenges in generating cash from core operations, although cash flow from investing activities has improved, resulting in a net cash inflow of INR 1.00 crore in Mar'25. Overall, while Modi Rubber has experienced growth in sales and assets, it continues to face significant profitability challenges.
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