Revenue and Profitability Trends
Examining Narendra Prop.'s net sales reveals a notable pattern. The company reported no sales from fiscal years ending March 2019 through March 2022, indicating either a dormant phase or restructuring period. Sales commenced in the year ending March 2023 with ₹11.22 crores, surged to ₹18.63 crores in March 2024, before declining to ₹7.36 crores in March 2025. This volatility suggests a business still stabilising its revenue streams.
Operating profit margins excluding other income peaked impressively at 50.09% in March 2023, reflecting efficient cost management or favourable market conditions during that year. However, this margin contracted sharply to 11.59% in March 2024 and turned negative to -5.43% in March 2025, signalling rising operational costs or pricing pressures. Despite this, the company’s gross profit margin remained relatively stable around 16-17% in the last two years, indicating consistent core profitability before overheads.
Profit after tax (PAT) margins followed a similar trajectory, reaching a high of 38.32% in March 2023, then moderating to approximately 12% in both March 2024 and March 2025. The PAT figures reflect the company’s ability to generate net earnings despite fluctuating revenues and operational challenges.
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Cost Structure and Expenses
The company’s expenditure profile shows raw material costs fluctuating significantly, from negligible amounts in March 2024 to ₹3.30 crores in March 2025. The increase/decrease in stocks also varied widely, with a substantial positive adjustment of ₹13.76 crores in March 2024, which may indicate inventory realignment or stock liquidation. Employee costs have risen steadily but remain modest relative to total income, suggesting a lean workforce or outsourcing strategy.
Other expenses have increased from ₹0.54 crores in March 2021 to ₹0.75 crores in March 2025, reflecting incremental overheads. The total expenditure excluding depreciation peaked in March 2024 at ₹16.47 crores before falling to ₹7.76 crores in March 2025, mirroring the revenue trend.
Balance Sheet and Financial Position
Narendra Prop.’s balance sheet indicates a stable equity base with share capital consistently at ₹7.16 crores and reserves growing from ₹17.91 crores in March 2020 to ₹30.45 crores in March 2025. Shareholders’ funds have increased steadily, reaching ₹37.62 crores in the latest fiscal year, signalling retained earnings accumulation and financial solidity.
Long-term borrowings were present in March 2021 and 2022 but were fully repaid by March 2023, leaving the company debt-free in recent years. Current liabilities have decreased substantially from ₹11.65 crores in March 2020 to ₹0.31 crores in March 2025, improving the company’s liquidity position.
On the asset side, inventories have declined from over ₹33 crores in March 2022 to ₹14.15 crores in March 2025, indicating better inventory management or sales realisation. Cash and bank balances have fluctuated, with a notable drop to ₹0.18 crores in March 2025 from ₹6.83 crores in March 2024, which may warrant closer monitoring.
Cash Flow Analysis
Cash flow from operating activities has been inconsistent, with a negative outflow of ₹3 crores in March 2025 contrasting with positive inflows in prior years. Investing activities contributed a modest inflow of ₹1 crore in the latest year, while financing activities have been largely neutral recently. The net cash position has declined, reflecting operational challenges and working capital demands.
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Summary and Outlook
Overall, Narendra Prop. has demonstrated a mixed historical performance characterised by a late start in revenue generation, followed by a peak and subsequent decline in sales and profitability. The company has strengthened its balance sheet by reducing debt and increasing reserves, which provides a foundation for future growth. However, recent negative operating margins and cash flow outflows highlight operational challenges that require strategic attention.
Investors should consider the company’s volatile revenue and profit trends alongside its improving financial position. The evolving cost structure and working capital management will be critical factors influencing Narendra Prop.’s ability to sustain profitability and generate positive cash flows going forward.
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