How has been the historical performance of Orient Bell?

Dec 01 2025 11:08 PM IST

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Orient Bell has experienced declining net sales and profits from March 2023 to March 2025, with net sales dropping from INR 705.07 crore to INR 669.77 crore and profit after tax falling from INR 21.73 crore to INR 2.55 crore, despite some improvements in cash flow. Total liabilities and assets increased during this period, indicating a challenging financial environment.

Revenue and Operating Income Trends

Over the past seven years, Orient Bell's net sales have demonstrated a generally stable trajectory with some volatility. The company recorded net sales of approximately ₹669.77 crores in the fiscal year ending March 2025, slightly down from ₹674.46 crores in the previous year. The peak in this period was observed in March 2023, with net sales reaching ₹705.07 crores. Earlier years showed a gradual increase from ₹492.29 crores in March 2020 to ₹654.31 crores in March 2022, reflecting growth momentum prior to the recent plateau.

Total operating income mirrored these sales figures, as there was no other operating income reported during this period. This consistency underscores the company's reliance on core sales activities without significant ancillary income streams.

Cost Structure and Profitability

Orient Bell's expenditure profile reveals key cost components such as raw material costs, purchase of finished goods, employee costs, power costs, and other expenses. Raw material costs have fluctuated, peaking at ₹111.75 crores in March 2023 before easing to ₹95.98 crores in March 2025. Similarly, power costs, a significant expense, declined from ₹178.39 crores in March 2023 to ₹117.15 crores in March 2025, indicating improved operational efficiencies or cost management.

Operating profit before depreciation and interest (PBDIT) excluding other income showed a decline from ₹55.68 crores in March 2022 to ₹28.07 crores in March 2025, reflecting margin pressures. Operating profit margins followed suit, dropping from 8.56% in March 2022 to 4.21% in March 2025. Despite this, the company maintained a positive operating profit, supported by other income which remained modest but stable.

Profitability and Earnings

Profit before tax (PBT) and profit after tax (PAT) have experienced significant fluctuations. The PBT peaked at ₹33.98 crores in March 2022 but sharply declined to ₹3.48 crores by March 2025. Correspondingly, PAT dropped from ₹31.03 crores in March 2022 to a modest ₹2.55 crores in March 2025. The consolidated net profit followed a similar pattern, falling from ₹32.19 crores in March 2022 to ₹2.84 crores in March 2025.

Earnings per share (EPS) reflected these trends, with a high of 22.31 in March 2022, declining to 1.94 in March 2025. The PAT margin also contracted from 4.95% to 0.43% over the same period, indicating tighter profitability.

Balance Sheet and Financial Position

Orient Bell's balance sheet shows a steady increase in shareholder's funds, rising from ₹249.26 crores in March 2021 to ₹316.09 crores in March 2025. Total reserves also grew consistently, reaching ₹299.31 crores by March 2025. The company’s total liabilities increased moderately to ₹529.45 crores in March 2025 from ₹434.42 crores in March 2021, reflecting some leverage expansion.

Long-term borrowings have fluctuated, with a notable increase to ₹29.68 crores in March 2025 from a low of ₹1.87 crores in March 2023. Short-term borrowings also rose to ₹14.30 crores in March 2025. Despite this, the company maintained a healthy book value per share, which improved from ₹173.66 in March 2021 to ₹215.76 in March 2025.

Cash Flow and Liquidity

Cash flow from operating activities has been positive throughout, with ₹33 crores generated in March 2025, though this is lower than the ₹64 crores recorded in March 2020. Investing activities mostly reflected outflows, notably a significant ₹63 crores outflow in March 2024, while financing activities showed mixed trends with a net outflow of ₹4 crores in March 2025.

Closing cash and cash equivalents improved substantially to ₹34 crores in March 2025 from ₹13 crores the previous year, indicating enhanced liquidity management.

Summary of Historical Performance

Orient Bell has experienced a mixed performance over recent years, with revenue growth peaking in 2023 before a slight decline. Profitability has been under pressure, with margins contracting and net profits falling sharply since 2022. The company’s balance sheet remains robust, supported by growing reserves and shareholder equity, though debt levels have increased moderately. Cash flow remains positive, supporting operational needs and liquidity.

Investors should weigh the company's stable asset base and cash flow generation against the recent dip in profitability and rising borrowings when considering its historical performance and future prospects.

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