Revenue and Profit Growth
Motisons Jewel’s net sales have shown a robust increase, rising from ₹314.33 crores in March 2022 to ₹462.11 crores by March 2025. This represents a compound growth trend reflecting expanding market demand and effective sales strategies. Correspondingly, the total operating income mirrors this growth, with no other operating income reported, indicating the company’s core business remains the primary revenue source.
Operating profit before depreciation and interest (PBDIT) has also improved significantly, climbing from ₹38.61 crores in March 2022 to ₹68.42 crores in March 2025. This growth in operating profit is supported by a steady operating profit margin, which increased from 12.28% to 14.81% over the same period, signalling enhanced operational efficiency and cost management.
Profit after tax (PAT) has more than doubled, rising from ₹14.75 crores in March 2022 to ₹43.17 crores in March 2025. The PAT margin improved from 4.69% to 9.34%, underscoring the company’s ability to convert sales into net earnings effectively. Interest expenses have notably decreased from ₹15.93 crores in March 2022 to ₹7.76 crores in March 2025, contributing positively to net profitability.
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Cost Structure and Margins
The company’s expenditure profile reveals a mixed trend. Raw material costs increased substantially in the latest fiscal year, reflecting higher input prices or volume, while purchases of finished goods fluctuated, peaking in March 2024 before declining in March 2025. The negative figures in stock changes indicate inventory build-up, which may impact working capital.
Employee costs have risen steadily, consistent with business expansion, while other expenses have also increased, though manufacturing and selling expenses remain minimal or nil. Despite these cost pressures, Motisons Jewel has maintained healthy gross profit margins, which improved from 7.26% in March 2022 to 13.29% in March 2025, indicating better pricing power or cost control.
Balance Sheet Strength and Capitalisation
Shareholder’s funds have grown markedly, from ₹115.45 crores in March 2022 to ₹413.52 crores in March 2025, reflecting retained earnings accumulation and possibly equity infusion. Total reserves have similarly expanded, supporting the company’s financial stability.
Long-term borrowings have been significantly reduced, from ₹16.26 crores in March 2022 to a nominal ₹0.46 crores in March 2025, signalling a strategic deleveraging effort. Short-term borrowings also declined from ₹135.35 crores to ₹70.68 crores, easing financial risk.
On the asset side, inventories have increased in line with sales growth, reaching ₹477.99 crores by March 2025, while net block of fixed assets remains relatively stable, indicating controlled capital expenditure. Total assets have expanded from ₹305.80 crores to ₹507.47 crores over the period, consistent with business growth.
Cash Flow and Liquidity
Cash flow from operating activities has been volatile, with negative cash flows in the latest two years, reflecting working capital pressures, particularly due to inventory and receivables management. The net cash outflow in March 2025 was ₹25 crores, following a positive inflow in the previous year. Cash and bank balances have fluctuated, ending at ₹7.13 crores in March 2025, down from ₹32.72 crores the year before.
Investing activities have been minimal, while financing activities show a net outflow in the latest year, indicating repayments or dividend payments. Overall, the company’s liquidity position requires monitoring, given the working capital demands.
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Summary and Outlook
Motisons Jewel’s historical performance reflects a company on a growth path, with increasing revenues, improving profitability, and strengthening equity base. The reduction in debt levels enhances financial flexibility, while rising margins indicate operational improvements. However, the negative operating cash flows and rising inventories suggest working capital management challenges that could impact liquidity if not addressed.
Investors should weigh the company’s solid earnings growth and balance sheet improvements against the cash flow dynamics. Continued focus on efficient capital utilisation and inventory control will be crucial for sustaining this positive momentum in the competitive gems and jewellery sector.
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