Revenue and Profit Trends
Examining net sales, Pasupati Spinng. recorded a peak in the fiscal year ending March 2023, with revenues reaching ₹137.44 crores. However, this was followed by a decline to ₹100.50 crores in March 2025, indicating some volatility in top-line growth. The year 2021 was notably challenging, with sales dipping to ₹66.44 crores, reflecting external or operational pressures during that period.
Operating profit margins, excluding other income, have generally hovered between 4.7% and 6.7% over the years, with a low point in 2021 where the margin turned slightly negative. Despite this, the company managed to sustain positive operating profits in most years, supported by other income streams. The operating profit (PBDIT) including other income peaked at ₹10.01 crores in 2019 but saw a downward trend thereafter, settling at ₹7.82 crores in 2025.
Profit after tax (PAT) has mirrored this variability, with a significant loss recorded in 2021 at ₹-3.08 crores. Since then, the company has returned to profitability, posting a PAT of ₹0.88 crores in 2025. Earnings per share (EPS) followed a similar pattern, with a negative EPS in 2021 but recovering to ₹0.94 in 2025, signalling a cautious but positive turnaround.
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Cost Structure and Margins
The company’s cost of raw materials has fluctuated in line with sales, peaking at ₹61.02 crores in 2023 before easing to ₹34.19 crores in 2025. Employee costs and power expenses have remained relatively stable, with slight increases reflecting operational scale and inflationary pressures. Manufacturing expenses also showed a peak in 2023 but have since moderated.
Despite these cost pressures, Pasupati Spinng. has maintained a gross profit margin around 2.8% to 3.7% in recent years, with a dip in 2021. The PAT margin, while thin, has improved from a negative 4.64% in 2021 to a positive 0.88% in 2025, indicating better cost control and operational efficiency.
Balance Sheet and Financial Position
On the balance sheet front, shareholder’s funds have shown steady growth from ₹28.54 crores in 2021 to ₹31.50 crores in 2025. The company’s total liabilities have remained relatively stable, hovering around ₹100 to ₹110 crores. Notably, long-term borrowings increased to ₹6.24 crores in 2025 from ₹1.75 crores in 2021, while short-term borrowings have remained elevated around ₹47 crores, reflecting a reliance on working capital financing.
Net block of fixed assets has increased modestly to ₹37.81 crores in 2025, suggesting ongoing investment in plant and machinery. Meanwhile, current assets have declined from ₹76.47 crores in 2022 to ₹66.09 crores in 2025, with inventories and sundry debtors remaining significant components. The company’s book value per share has improved steadily from ₹30.56 in 2021 to ₹33.74 in 2025, signalling incremental value creation for shareholders.
Cash Flow Analysis
Cash flow from operating activities has been positive in recent years, with ₹4 crores generated in 2025 compared to a negative cash flow in 2022. Investing activities have consistently absorbed cash, reflecting capital expenditure commitments. Financing activities have varied, with a net inflow of ₹2 crores in 2025 after periods of outflows, indicating active management of debt and equity financing.
Overall, the company’s net cash position remains modest, with closing cash and cash equivalents at negligible levels in 2025, underscoring the importance of working capital management in its operations.
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Summary of Historical Performance
Pasupati Spinng.’s historical performance reflects a company that has faced cyclical challenges but demonstrated resilience through operational adjustments and financial prudence. Revenue volatility, particularly the sharp dip in 2021, was followed by a recovery phase marked by improved profitability and margin expansion. The company’s ability to maintain positive operating profits and gradually enhance shareholder equity despite fluctuating sales is noteworthy.
However, the elevated debt levels, especially short-term borrowings, and modest cash reserves highlight areas requiring continued focus. The steady increase in book value per share and return to positive earnings per share in recent years provide a cautiously optimistic outlook for investors monitoring this microcap in the textile sector.
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