Revenue and Profitability Trends
Over the past six years, Phyto Chem (I) has seen a significant decline in net sales, dropping from ₹59.11 crores in March 2019 to ₹14.08 crores in March 2025. The peak sales figure was recorded in 2019, followed by a steady downward trend with intermittent fluctuations. This contraction in revenue has been accompanied by a corresponding decrease in total operating income, reflecting the company’s challenges in maintaining its market position.
Profitability metrics reveal a mixed picture. Operating profit before other income (PBDIT excl OI) was positive from 2019 through 2023, peaking at ₹2.61 crores in March 2023, but turned negative in the latest two years, with a loss of ₹1.34 crores in March 2025. However, other income has provided some cushion, contributing ₹2.47 crores in March 2025, which helped the company report a modest operating profit of ₹1.13 crores that year. Despite this, interest expenses remain substantial, consistently around ₹2 crores annually, which has pressured gross profit and overall earnings.
Profit before tax and profit after tax have mirrored these trends, with positive but modest profits in earlier years turning into losses in the last two fiscal years. The company reported a net loss of ₹0.99 crores in March 2025, reflecting a PAT margin of -7.03%, a sharp reversal from the positive margins seen in prior years.
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Cost Structure and Margins
The company’s raw material costs have consistently represented a significant portion of total expenditure, though these costs have declined in line with falling sales, from ₹52.02 crores in 2019 to ₹10.49 crores in 2025. Employee costs have remained relatively stable, averaging around ₹3 crores in earlier years but reducing to ₹2.11 crores in the latest fiscal year. Other expenses have also decreased but continue to weigh on profitability.
Operating profit margins excluding other income have deteriorated sharply, from a positive 4.09% in 2019 to a negative 9.52% in 2025. Gross profit margins have followed a similar trajectory, turning negative in recent years. These margin contractions underscore the company’s struggle to control costs amid declining revenues.
Balance Sheet and Financial Position
On the balance sheet front, shareholder’s funds have decreased from ₹10.18 crores in 2021 to ₹6.39 crores in 2025, reflecting accumulated losses and reduced reserves. Total liabilities have also declined from ₹45.13 crores in 2021 to ₹27.30 crores in 2025, with a notable reduction in both long-term and short-term borrowings. Despite this, the company continues to carry a significant debt burden, with total debt standing at ₹15.77 crores in 2025.
Asset management shows a contraction in net block from ₹3.43 crores in 2021 to ₹2.39 crores in 2025, indicating limited capital expenditure or asset sales. Current assets have also decreased, with inventories and sundry debtors reducing in line with lower sales volumes. The company’s book value per share has declined from ₹23.68 in 2021 to ₹14.85 in 2025, signalling erosion in net worth.
Cash Flow Overview
Cash flow statements reveal modest operating cash inflows in recent years, with ₹1 crore generated in 2025. Investing activities have been minimal, while financing activities have consistently resulted in cash outflows, reflecting debt repayments or other financing adjustments. The net cash position remains negligible, with closing cash and cash equivalents close to zero throughout the period analysed.
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Summary and Outlook
In summary, Phyto Chem (I) has faced a challenging period characterised by declining sales, shrinking profit margins, and net losses in the last two fiscal years. While the company has managed to reduce its liabilities and maintain some operating cash flow, the erosion of shareholder equity and persistent losses highlight the need for strategic turnaround initiatives. Investors should closely monitor the company’s efforts to stabilise revenues and improve cost efficiencies to regain profitability and strengthen its financial position.
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