Revenue and Operating Income Trends
Examining Omega Ag Seeds’ net sales reveals a significant decline over the years. The company reported net sales of ₹0.51 crore in March 2017 and ₹0.49 crore in March 2016, but from March 2018 onwards, net sales have consistently remained at zero. Correspondingly, total operating income followed the same pattern, with figures of ₹0.51 crore and ₹0.49 crore in 2017 and 2016 respectively, before dropping to nil in subsequent years. This absence of revenue in recent years indicates a halt or significant reduction in core business activities.
Other operating income has remained negligible throughout the period, contributing no meaningful uplift to total income. The lack of sales and operating income in recent years suggests challenges in sustaining business operations or a strategic shift away from revenue-generating activities.
Cost Structure and Profitability
The company’s expenditure profile shows consistent costs despite the absence of revenue. Purchase of finished goods was notable in 2016 and 2017, closely matching the operating income, but has since dropped to zero. Employee costs have remained relatively stable at around ₹0.03 crore annually, while manufacturing expenses hovered around ₹0.12 crore in earlier years and have since ceased. Other expenses have fluctuated, with a slight increase in recent years despite no sales.
Operating profit before other income (PBDIT excl. other income) has been negative for most years, reflecting operating losses. However, the inclusion of other income, which peaked at ₹0.58 crore in March 2025, has occasionally turned operating profit positive, as seen in the latest fiscal year. This suggests reliance on non-operational income sources to offset operational deficits.
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Profitability and Earnings Per Share
Profit before tax has mirrored the operating profit trend, with positive figures only in select years such as March 2016, 2017, 2019, and 2025. The latest fiscal year ended with a profit before tax of ₹0.35 crore, a marked improvement from losses in the preceding two years. Profit after tax followed a similar pattern, with the company reporting a positive ₹0.35 crore in March 2025 after losses in 2023 and 2024.
Earnings per share (EPS) have been volatile, reflecting the inconsistent profitability. EPS was positive at 0.05 and 0.04 in 2016 and 2017 respectively, turned negative in 2023 and 2024, and rebounded to 0.44 in March 2025. This volatility highlights the company’s fluctuating financial health and earnings capacity.
Cash Flow and Liquidity Position
Cash flow data indicates limited operational cash generation. Operating cash flow was negative in years such as 2017 and 2018, with a notable cash outflow of ₹7 crore in 2022. Investing activities have occasionally provided inflows, balancing some operational outflows. Financing activities have remained inactive, suggesting no recent capital raising or debt servicing.
Closing cash and cash equivalents have been minimal, with ₹0.02 crore reported in 2017 and zero in recent years. This constrained liquidity position may impact the company’s ability to fund operations or invest in growth without external financing.
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Summary of Historical Performance
Overall, Omega Ag Seeds has experienced a challenging financial trajectory characterised by negligible sales in recent years, persistent operating losses, and reliance on other income to achieve profitability. The company’s cost base has remained relatively fixed despite the lack of revenue, contributing to negative operating margins historically. Cash flow constraints and minimal liquidity further underscore operational difficulties.
While the latest fiscal year shows signs of recovery with a positive profit after tax and improved EPS, the absence of core revenue generation raises questions about the sustainability of this performance. Investors should carefully consider these factors alongside broader market conditions and sectoral trends before making investment decisions.
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