Revenue and Profit Trends
Net sales for Peria Kara. Tea have shown a mixed trajectory from FY18 to FY24. The company recorded a peak in sales in FY21 at ₹72.79 crores, followed by a decline in subsequent years, with FY24 sales at ₹53.70 crores. This volatility suggests sensitivity to market conditions and possibly operational disruptions. Despite this, the company managed to increase sales modestly from ₹51.54 crores in FY23 to ₹53.70 crores in FY24, indicating a potential stabilisation.
Operating profit margins excluding other income have varied significantly, reaching a high of 39.87% in FY21 but dropping sharply to 11.17% in FY24. The operating profit (PBDIT) including other income also reflects this pattern, with a notable peak in FY21 at ₹29.32 crores, followed by a steep decline to ₹12.04 crores in FY24. The fluctuations in profitability highlight the impact of cost management and market demand on earnings.
Profit after tax (PAT) has mirrored these trends, with a strong performance in FY21 at ₹11.40 crores, contrasted by losses in FY20 and FY23. The FY24 PAT rebounded to ₹5.34 crores, signalling recovery. Earnings per share (EPS) have similarly oscillated, with a high of 36.77 in FY21 and a negative EPS in FY23, before improving to 17.42 in FY24.
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Cost Structure and Margins
The company’s expenditure profile reveals consistent employee costs, which have risen gradually from ₹24.98 crores in FY19 to ₹28.24 crores in FY24, representing a significant portion of total expenses. Raw material costs have remained relatively low and stable, reflecting efficient procurement or production processes. Purchase of finished goods has increased notably in FY24 to ₹6.39 crores, suggesting a strategic shift or increased outsourcing.
Other expenses have also increased steadily, reaching ₹13.75 crores in FY24. The total expenditure excluding depreciation rose from ₹39.91 crores in FY19 to ₹47.70 crores in FY24, indicating rising operational costs. Despite these pressures, the company has maintained a gross profit margin of 18.4% in FY24, a recovery from a negative margin in FY23, signalling improved cost control or pricing power.
Balance Sheet and Financial Position
Peria Kara. Tea’s balance sheet shows a steady increase in shareholder’s funds, rising from ₹171.17 crores in FY19 to ₹191.22 crores in FY24. The company’s reserves have also grown, supporting financial stability. Total liabilities have fluctuated, peaking at ₹247.68 crores in FY22 before declining to ₹227.85 crores in FY24, reflecting debt management efforts.
Long-term borrowings have decreased from ₹13.48 crores in FY19 to ₹5.79 crores in FY24, while short-term borrowings have seen variability, notably spiking in FY22 before settling at ₹15.65 crores in FY24. The net block of fixed assets has gradually declined, indicating depreciation outpacing capital expenditure. Non-current investments have increased to ₹159.37 crores in FY24, suggesting strategic asset allocation.
Cash Flow Analysis
Cash flow from operating activities has been inconsistent, with a positive ₹1 crore in FY24 following a significant negative ₹29 crores in FY23. Investing activities have shown positive inflows in FY24 at ₹5 crores, reversing prior outflows, while financing activities have consistently been negative, reflecting debt repayments or dividend payments. The company’s closing cash and cash equivalents improved to ₹13 crores in FY24, enhancing liquidity.
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Summary of Historical Performance
Overall, Peria Kara. Tea’s historical performance reflects a company navigating cyclical industry challenges and internal operational shifts. The peak in FY21 across revenue and profitability metrics was followed by a period of contraction and losses, with a recent recovery evident in FY24. The company’s ability to manage costs, reduce long-term debt, and improve cash flows will be critical for sustaining growth and profitability going forward.
Investors should note the volatility in earnings and margins, balanced by a solid equity base and improving liquidity. The company’s strategic investments and cost management initiatives appear to be bearing fruit, but cautious optimism is warranted given the historical fluctuations.
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