Revenue and Profitability Trends
Over the seven-year period ending March 2025, Mohit Paper Mill’s net sales exhibited notable volatility. The company’s revenue peaked in fiscal 2023 at over ₹220 crores before moderating to approximately ₹180 crores in the latest fiscal year. Despite this dip, the sales figure remains significantly higher than the ₹81 crores recorded in 2021, reflecting a recovery and expansion phase post that low point.
Operating profit margins have shown a commendable upward trend, rising from a modest 2.4% in 2021 to over 10% in 2025. This improvement is indicative of enhanced operational efficiency and cost management. The company’s earnings before interest, depreciation, and tax (EBITDA) increased from ₹1.94 crores in 2021 to ₹18.10 crores in 2025, excluding other income, which also rose steadily, contributing to a total operating profit of ₹24.65 crores in the latest year.
Profit after tax (PAT) has mirrored this positive momentum, turning around from a loss of ₹3.44 crores in 2021 to a profit of ₹6.50 crores in 2025. The PAT margin improved accordingly, reaching 3.61% in the latest fiscal year, up from a negative margin in 2021. Earnings per share (EPS) followed suit, rising from a negative ₹2.46 in 2021 to ₹4.64 in 2025, signalling enhanced shareholder value.
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Cost Structure and Expenditure Analysis
The company’s cost of raw materials has generally increased in line with sales growth, reaching nearly ₹60 crores in 2025. Power costs, a significant expense for the paper manufacturing sector, peaked at over ₹77 crores in 2023 but have since declined to ₹48 crores in 2025, reflecting improved energy management or operational adjustments. Employee costs have risen steadily but remain a smaller proportion of total expenditure.
Other expenses have fluctuated but remain substantial, with ₹45 crores recorded in 2025. Total expenditure excluding depreciation has decreased from ₹210 crores in 2023 to ₹162 crores in 2025, supporting the improved operating margins. Interest costs have increased to ₹6.86 crores in 2025, reflecting higher borrowings, but remain manageable relative to operating profits.
Balance Sheet and Asset Base
Mohit Paper Mill’s total assets have expanded from approximately ₹104 crores in 2020 to nearly ₹198 crores in 2025, driven by growth in both fixed assets and current assets. The net block of assets increased significantly, indicating ongoing capital investments, while inventories and sundry debtors have also risen, consistent with higher sales volumes.
Shareholders’ funds have strengthened from ₹31 crores in 2021 to ₹51 crores in 2025, supported by accumulated reserves. The company’s total debt has more than doubled since 2021, reaching ₹79 crores in 2025, with both long-term and short-term borrowings increasing. Despite this, the company maintains a positive net current asset position, signalling adequate liquidity.
Cash Flow and Financial Health
Operating cash flows have improved markedly, with ₹13 crores generated in 2025 compared to negative cash flows in 2022. Investing activities have consistently involved cash outflows, reflecting capital expenditure, while financing activities have varied, including debt repayments and borrowings. The company’s closing cash and cash equivalents have increased to ₹5 crores in 2025, enhancing its liquidity buffer.
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Summary of Historical Performance
In summary, Mohit Paper Mill has navigated a challenging period marked by revenue fluctuations and a temporary loss in 2021. Since then, the company has demonstrated a robust recovery, with improving sales, profitability, and cash flow generation. The balance sheet shows growth in assets and equity, albeit with increased leverage. Operational efficiencies have contributed to expanding margins, and the company’s earnings per share have turned positive and grown steadily.
Investors analysing Mohit Paper Mill’s historical performance will note the company’s resilience and capacity to enhance profitability despite sectoral pressures. The upward trajectory in key financial metrics suggests a strengthening business model, though the rising debt levels warrant monitoring. Overall, the company’s financial health and operational progress position it favourably for future growth prospects.
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