Revenue and Operating Performance Trends
Picturehouse's net sales have experienced considerable variation, peaking notably in the fiscal years ending March 2022 and March 2023 with figures exceeding ₹15 crores. However, these highs were interspersed with sharp declines, including near negligible sales in the years ending March 2021 and March 2025. The total operating income mirrored this pattern, reflecting the company's inconsistent revenue generation capabilities.
Operating expenses, excluding depreciation, have generally remained substantial, with a peak expenditure of over ₹42 crores in March 2020, gradually reducing to under ₹2 crores by March 2025. Employee costs have shown a modest upward trend, rising from ₹0.40 crores in March 2021 to ₹0.69 crores in March 2025, indicating a steady investment in human resources despite fluctuating revenues.
Manufacturing expenses displayed a sharp increase in the fiscal years 2022 and 2023, reaching ₹10.60 crores and ₹20 crores respectively, before dropping to zero in subsequent years. Other expenses have also declined significantly from a high of nearly ₹70 crores in March 2019 to just over ₹1 crore in March 2025, suggesting cost rationalisation efforts.
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Profitability and Margins
Operating profit before depreciation and interest (PBDIT) excluding other income has largely been negative, with the company posting losses in most years except for a modest positive figure in March 2022. However, the inclusion of other income, which surged to nearly ₹20 crores in March 2025, turned operating profit positive in recent years, reaching ₹17.87 crores in the latest fiscal year.
Despite this improvement, interest expenses remain a significant burden, peaking at nearly ₹40 crores in March 2020 and still substantial at ₹15.91 crores in March 2025. This high interest cost has constrained gross profit and overall profitability, although the company reported a positive profit before tax of ₹1.95 crores in March 2025, a marked turnaround from losses exceeding ₹70 crores in earlier years.
Profit after tax followed a similar trajectory, swinging from deep losses in the range of ₹48 crores to ₹98 crores in the years before March 2023, to a remarkable profit of over ₹205 crores in March 2023, before settling at a positive ₹2.09 crores in March 2025. Earnings per share reflected this volatility, with a peak of 39.24 in March 2023 and a modest positive 0.35 in the latest year.
Balance Sheet and Financial Position
Picturehouse's balance sheet reveals persistent challenges with shareholder funds remaining negative throughout the period, though the deficit narrowed from nearly ₹276 crores in March 2022 to about ₹70 crores in March 2025. Total liabilities have fluctuated, with a notable increase in long-term borrowings to ₹197 crores in the latest year, indicating reliance on debt financing.
Current assets have grown substantially, driven largely by a sharp rise in inventories to over ₹255 crores by March 2025, while net current assets improved to a positive ₹222 crores, a significant recovery from negative figures in prior years. Fixed assets have steadily depreciated, with net block values declining from ₹1.46 crores in March 2020 to ₹0.79 crores in March 2025.
Cash Flow Analysis
Cash flow from operating activities has shown a positive trend in recent years, rising to ₹47 crores in March 2025 from a low of negative ₹7 crores in March 2022. This improvement reflects better working capital management and operational cash generation. Investing activities have been relatively muted, with minor inflows and outflows, while financing activities saw a significant outflow of ₹47 crores in the latest year, possibly reflecting debt repayments or capital restructuring.
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Summary of Historical Performance
Overall, Picturehouse's historical performance has been characterised by significant volatility in revenue and profitability, with periods of deep losses offset by occasional spikes in other income that have temporarily improved operating results. The company has faced persistent balance sheet challenges, including negative net worth and high debt levels, though recent years show signs of stabilisation and modest profitability.
Investors should note the company's fluctuating earnings and the impact of high interest costs on net profitability. The recent positive cash flow from operations and improved net current assets suggest better liquidity management, but the elevated inventory levels and ongoing debt obligations remain areas to monitor closely.
Given this mixed financial history, stakeholders are advised to weigh the company's recovery signs against its structural challenges when considering investment decisions.
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