Revenue and Profitability Trends
Over the seven-year period ending March 2025, Mohit Industries' net sales have shown a consistent downward trend, falling from ₹191.47 crores in March 2019 to ₹112.40 crores in March 2025. This decline reflects a contraction of over 40%, signalling significant challenges in maintaining top-line growth. The absence of other operating income throughout this period indicates the company’s reliance solely on its core sales activities.
Correspondingly, total operating income mirrored this decline, with expenses closely tracking revenue movements. Raw material costs, the largest expenditure component, decreased from ₹144.18 crores in 2019 to ₹87.99 crores in 2025, consistent with lower sales volumes. Employee costs remained relatively stable, fluctuating modestly around ₹7.5 to ₹8.3 crores, suggesting controlled labour expenses despite revenue pressures.
Operating profit before other income (PBDIT excl. OI) deteriorated sharply, turning negative in the latest fiscal year with a margin of -0.4%, down from a healthy 4.72% margin in 2019. Although other income provided some cushion, the overall operating profit margin declined from 6.8% in 2019 to just over 1.2% in 2024 before slipping further. The company’s interest expenses have also decreased from ₹8.57 crores in 2019 to ₹3.46 crores in 2025, reflecting some deleveraging efforts.
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Profitability and Earnings
Profit before tax has swung from modest positive figures in earlier years to consistent losses in recent times, with a loss of ₹3.28 crores reported in March 2025. This has translated into negative net profits for the last three years, with the consolidated net profit margin turning negative at -2.19% in 2025. Earnings per share have followed suit, declining from positive ₹0.49 in 2019 to a negative ₹1.72 in 2025, indicating sustained pressure on shareholder returns.
Despite these challenges, the company’s reserves have grown substantially from ₹21.06 crores in 2019 to ₹161.86 crores in 2025, reflecting retained earnings and possibly capital infusion. However, the sharp drop in reserves in 2024 compared to 2023 suggests volatility in retained profits.
Balance Sheet and Financial Position
Mohit Industries’ total assets expanded from ₹93.39 crores in 2020 to ₹241.97 crores in 2025, driven largely by increases in non-current investments and shareholder funds. Shareholder’s funds have grown from ₹33.35 crores in 2020 to ₹176.02 crores in 2025, indicating a stronger equity base. The book value per share has also risen significantly over this period, reaching ₹124.33 in 2025 from ₹23.55 in 2020, which may be attractive to investors seeking underlying asset value.
On the liabilities side, total debt has fluctuated but remained elevated, with ₹59.18 crores reported in 2025. Short-term borrowings constitute the majority of this debt, increasing to ₹57.40 crores in 2025 from ₹41.40 crores in 2020, which could imply liquidity pressures. Long-term borrowings have decreased steadily, suggesting some repayment or restructuring efforts.
Current liabilities have also increased, reaching ₹61.39 crores in 2025, outpacing current assets and resulting in negative net current assets. This imbalance points to potential working capital constraints that the company may need to address.
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Cash Flow and Operational Efficiency
Cash flow from operating activities has been inconsistent, with a negative outflow of ₹4 crores in 2025 following a positive inflow of ₹9 crores in 2024. This volatility reflects the company’s struggle to generate steady cash from core operations. Investing activities have generally seen minor outflows, while financing activities have fluctuated, including a ₹5 crore inflow in 2025 after a significant outflow in 2024.
The company’s cash and bank balances remain minimal, under ₹1 crore in recent years, which may limit its ability to manage short-term obligations comfortably. Working capital changes have also been erratic, further complicating liquidity management.
Overall, Mohit Industries has faced a challenging operating environment with declining revenues, squeezed margins, and net losses in recent years. While the balance sheet shows some strengthening in equity and reserves, elevated short-term debt and negative working capital highlight ongoing financial risks. Investors should weigh these factors carefully when considering the company’s prospects.
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