Revenue and Operating Performance Trends
Over the period from fiscal year ending March 2011 to March 2015, Polson demonstrated a commendable increase in net sales, rising from ₹75.21 crores in 2011 to ₹103.91 crores in 2015. This growth reflects a compound annual increase, signalling expanding market demand or enhanced operational capacity. Other operating income, however, showed variability, peaking at ₹6.30 crores in 2012 before declining to ₹2.71 crores by 2015, indicating some fluctuations in ancillary revenue streams.
Total operating income followed a similar upward trend, reaching ₹106.62 crores in 2015 from ₹76.73 crores in 2011. This growth was accompanied by rising raw material costs, which increased from ₹50.07 crores to ₹69.98 crores over the same period, reflecting either higher input prices or increased production volumes. Manufacturing expenses also escalated, from ₹10.80 crores in 2011 to ₹19.16 crores in 2015, while employee costs rose steadily, suggesting investment in human capital.
Operating profit before depreciation and interest (PBDIT) excluding other income peaked at ₹16.54 crores in 2014 but slightly declined to ₹14.66 crores in 2015. The inclusion of other income in 2015 boosted operating profit to ₹18.93 crores, highlighting the importance of non-operating income in that fiscal year. Despite this, the operating profit margin excluding other income contracted from 17.96% in 2011 to 13.75% in 2015, indicating margin pressures possibly due to rising costs.
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Profitability and Earnings Metrics
Polson's profit before tax (PBT) exhibited some volatility, with ₹9.17 crores in 2011 dipping to ₹6.66 crores in 2014 before recovering to ₹9.20 crores in 2015. Correspondingly, profit after tax (PAT) decreased from ₹6.24 crores in 2011 to ₹4.30 crores in 2014, then rose to ₹6.17 crores in 2015. The PAT margin mirrored this trend, falling from 8.13% in 2011 to 4.25% in 2014, before improving to 5.79% in 2015. These fluctuations suggest periods of margin compression followed by partial recovery.
Earnings per share (EPS) followed a similar pattern, with a high of ₹520.00 in 2011, a dip to ₹358.25 in 2014, and a rebound to ₹514.17 in 2015. This indicates that despite some earnings volatility, the company maintained strong per-share profitability over the period.
Balance Sheet Strength and Capital Structure
Examining the standalone balance sheet from fiscal years 2020 to 2025 reveals a solidifying financial position. Shareholder's funds increased steadily from ₹96.23 crores in 2020 to ₹126.61 crores in 2025, supported by rising reserves. Total liabilities remained relatively stable, with a slight increase from ₹183.86 crores in 2020 to ₹188.70 crores in 2025.
Long-term borrowings showed a notable decline from ₹40.15 crores in 2020 to ₹25.86 crores in 2025, reflecting a reduction in secured loans and an improved debt profile. Short-term borrowings fluctuated but trended downward from ₹18.50 crores in 2020 to ₹13.70 crores in 2025, indicating better working capital management. The company’s total debt decreased from ₹58.65 crores in 2020 to ₹39.57 crores in 2025, enhancing financial stability.
On the asset side, net block values increased from ₹94.33 crores in 2020 to ₹119.89 crores in 2025, signalling ongoing capital investment. Current assets declined from ₹59.67 crores in 2020 to ₹36.16 crores in 2025, which may reflect inventory and receivables optimisation. Book value per share rose consistently, reaching ₹10,551.07 in 2025 from ₹8,019.25 in 2020, underscoring growing net asset value per share.
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Cash Flow and Liquidity Analysis
Polson's cash flow from operating activities demonstrated resilience, with ₹31 crores generated in 2020, dipping to ₹1 crore in 2022, before recovering to ₹17 crores in 2025. Cash flow after changes in working capital followed a similar pattern, peaking at ₹35 crores in 2020 and stabilising at ₹18 crores in 2025. Investing activities consistently showed cash outflows, reflecting ongoing capital expenditure, while financing activities fluctuated, including significant outflows in 2021 and 2023.
Net cash inflow/outflow remained balanced in most years, with minor fluctuations, indicating prudent cash management. Closing cash and cash equivalents were modest, with ₹1.25 crores reported in 2025, suggesting limited liquidity buffers but stable cash positions overall.
Overall, Polson's historical performance portrays a company with steady revenue growth, fluctuating but generally solid profitability, improving capital structure, and cautious cash flow management. Investors should consider these factors alongside market conditions when evaluating Polson's investment potential.
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