How has been the historical performance of Parker Agrochem?

Revenue and Operating Income Trends

The company’s net sales have demonstrated considerable volatility, with a notable surge in the fiscal year ending March 2025, where sales reached ₹66.26 crores, a substantial increase from ₹5.46 crores in the previous year. Prior to this, sales figures fluctuated between ₹2.21 crores and ₹8.31 crores in the years from 2018 to 2024, reflecting an inconsistent top-line performance. Other operating income remained negligible throughout this period, indicating reliance primarily on core sales activities.

Total operating income mirrored net sales closely, confirming the absence of significant ancillary revenue streams. The purchase of finished goods accounted for a large portion of costs in recent years, particularly in 2025, where it stood at ₹62.73 crores, underscoring a business model heavily dependent on procurement rather than in-house raw material processing. Employee costs remained relatively stable, ranging from ₹0.50 crores to ₹0.80 crores, while other expenses showed a gradual increase, reaching ₹2.68 crores in 2025.

Profitability and Margins

Operating profit before depreciation and interest (PBDIT) excluding other income has seen wide swings, from a loss of ₹0.95 crores in 2021 to a modest profit of ₹1.23 crores in 2024. The fiscal year 2025 saw a marginal operating profit of ₹0.09 crores, despite the sharp increase in sales, indicating tight margins. Including other income, operating profit remained subdued, with a slight improvement in 2024 but a near breakeven in 2025.

Interest expenses have increased gradually, reaching ₹0.15 crores in 2025, which, combined with depreciation charges, contributed to a negative profit before tax of ₹0.22 crores in the latest fiscal year. Profit after tax followed a similar pattern, with losses in 2021 and 2022, a recovery in 2023 and 2024, and a return to a small loss in 2025. Earnings per share reflected these fluctuations, swinging from a negative ₹4.58 in 2021 to a positive ₹2.24 in 2024, before declining to a negative ₹0.42 in 2025.

Balance Sheet and Financial Position

Shareholder’s funds have generally remained modest, peaking at ₹5.45 crores in 2020 before declining to ₹3.88 crores in 2025. The company’s reserves have been negative since 2021, indicating accumulated losses over time. Total liabilities have hovered around ₹5.3 to ₹6.4 crores, with a gradual increase in total debt to ₹1.06 crores in 2025, reflecting a cautious approach to leverage.

Net block of fixed assets has decreased from ₹2.64 crores in 2020 to ₹2.25 crores in 2025, suggesting limited capital expenditure or asset disposals. Current assets have remained relatively stable, with cash and bank balances increasing slightly to ₹0.54 crores in 2025. Net current assets have fluctuated, turning positive again in recent years after periods of negative working capital.

Cash Flow and Operational Insights

Cash flow data indicates limited operational cash generation, with no significant inflows or outflows reported in recent years. The company’s cash flow from operating activities has been largely neutral, reflecting the tight profitability and working capital management challenges. Investing and financing activities have also shown minimal movement, suggesting a conservative financial strategy without major expansions or debt restructuring.

Overall, Parker Agrochem’s historical performance reveals a company navigating through periods of financial stress and recovery, with recent years marked by a sharp increase in sales but constrained profitability. The balance sheet remains modest with manageable debt levels, while cash flow remains subdued. Investors should weigh these factors carefully when considering the company’s future prospects.

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