How has been the historical performance of Orbit Exports?

Revenue and Profitability Trends

Orbit Exports’ net sales have shown a robust upward trend, rising from ₹138.56 crores in March 2019 to ₹217.77 crores in March 2025. This growth reflects a compound expansion in the company’s core operations, with a particularly sharp increase between March 2021 and March 2022, where sales nearly doubled from ₹68.45 crores to ₹126.75 crores. Operating profit margins have remained relatively stable, fluctuating between 25% and 29% in recent years, indicating consistent operational efficiency. The company’s operating profit (PBDIT) excluding other income rose from ₹37.49 crores in March 2019 to ₹54.14 crores in March 2025, underscoring improved earnings before interest and taxes.

Profit after tax (PAT) has also followed an upward trajectory, increasing from ₹23.45 crores in March 2019 to ₹37.68 crores in March 2025. The PAT margin has been maintained around 17-19% in recent years, reflecting effective cost control and tax management. Earnings per share (EPS) have correspondingly improved, reaching ₹14.74 in March 2025 from ₹9.11 in March 2019, signalling enhanced shareholder value.

Cost Structure and Expenditure

The company’s raw material costs have increased in line with sales, rising from ₹50.01 crores in March 2019 to ₹81.20 crores in March 2025. Notably, the increase or decrease in stocks has fluctuated, with a negative adjustment of ₹4 crores in March 2025, indicating inventory management dynamics. Employee costs have steadily risen, reflecting workforce expansion or wage inflation, reaching ₹32.12 crores in March 2025 from ₹22.68 crores in March 2019. Other expenses have also increased, consistent with the company’s growth, standing at ₹54.31 crores in March 2025.

Total expenditure excluding depreciation has grown from ₹101.07 crores in March 2019 to ₹163.63 crores in March 2025, mirroring the scale of operations. Despite rising costs, the company has maintained healthy operating margins, demonstrating effective cost control and operational leverage.

Balance Sheet and Financial Position

Orbit Exports’ shareholder funds have expanded significantly, from ₹176.86 crores in March 2021 to ₹273.33 crores in March 2025, supported by increasing reserves which reached ₹246.86 crores in the latest fiscal year. The company’s total liabilities have also increased but remain well-managed at ₹330.66 crores as of March 2025. Long-term borrowings have decreased from ₹25.37 crores in March 2023 to ₹10.93 crores in March 2025, indicating a reduction in debt burden and improved financial stability.

On the asset side, net block values have fluctuated, peaking at ₹152.27 crores in March 2023 before settling at ₹130.72 crores in March 2025. Capital work in progress has reduced substantially from ₹31.45 crores in March 2021 to ₹3.25 crores in March 2025, suggesting completion of major projects. Non-current investments have grown markedly, more than doubling from ₹32.43 crores in March 2023 to ₹72.39 crores in March 2025, reflecting strategic asset allocation.

Cash Flow and Liquidity

Cash flow from operating activities has shown a positive trend, increasing from ₹28 crores in March 2020 to ₹33 crores in March 2025, despite some fluctuations in interim years. The company has consistently invested in its operations, with cash flow from investing activities reflecting outflows, notably ₹25 crores in March 2025, indicative of ongoing capital expenditure or acquisitions.

Financing activities have generally resulted in outflows, with ₹9 crores spent in March 2025, reflecting debt repayments or dividend payments. Net cash inflow/outflow has been relatively stable, with a slight outflow of ₹2 crores in March 2025. Closing cash and cash equivalents stood at ₹1 crore in March 2025, down from ₹3 crores the previous year, signalling a modest reduction in liquidity reserves.

Summary of Historical Performance

Overall, Orbit Exports has exhibited a strong historical performance characterised by steady revenue growth, improving profitability, and prudent financial management. The company’s ability to maintain healthy operating and net profit margins amidst rising costs and investments highlights operational efficiency. Its balance sheet strength is evident in growing shareholder funds and reduced long-term borrowings, while cash flow metrics indicate sustainable business operations with ongoing investments for future growth.

Investors analysing Orbit Exports can note the consistent improvement in earnings per share and book value per share, which have nearly doubled over the six-year period. The company’s strategic focus on expanding non-current investments and managing liabilities prudently positions it well for continued growth in the competitive export sector.

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