Revenue and Profitability Trends
Examining the net sales trajectory, Poona Dal & Oil’s revenue has experienced notable volatility. The company recorded its peak sales in the fiscal year ending March 2022, reaching ₹242.53 crores, followed by a sharp decline to ₹147.20 crores in March 2025. This drop reflects a significant contraction of nearly 40% from the peak, indicating possible market pressures or operational challenges. Prior to the peak, sales fluctuated between ₹157 crores and ₹185 crores, suggesting a cyclical pattern in demand or pricing.
Operating profit margins have remained modest throughout the period, with the operating profit margin excluding other income peaking at 1.25% in March 2024 but falling to 0.52% by March 2025. Gross profit margins similarly declined from a high of 9.51% in 2019 to just 1.38% in 2025, signalling rising costs or pricing pressures. Despite these margin compressions, the company maintained positive operating profits, supported in part by other income, which contributed variably but notably in earlier years.
Profit after tax (PAT) margins have mirrored this trend, declining from a robust 8.26% in 2019 to under 1% in recent years, with PAT of ₹1.34 crores in March 2025. Earnings per share (EPS) followed suit, dropping from ₹26.50 in 2019 to ₹2.35 in 2025, reflecting the overall contraction in profitability.
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Cost Structure and Expenditure
The company’s cost of raw materials has generally tracked sales movements but with some fluctuations. Raw material costs peaked at ₹145.45 crores in March 2022, consistent with the highest sales year, before easing to ₹108.63 crores in March 2025. Purchase of finished goods showed significant variability, with a high of ₹92.56 crores in 2022 and a low of zero in 2024, indicating changes in sourcing or inventory strategies.
Other operating expenses, including employee costs and other expenses, remained relatively stable and low, reflecting a lean operational model. Total expenditure excluding depreciation closely followed revenue trends, peaking at ₹240.99 crores in 2022 and falling to ₹146.44 crores in 2025.
Balance Sheet and Financial Position
Poona Dal & Oil’s balance sheet reveals a stable equity base with share capital consistently at ₹5.71 crores and reserves growing steadily from ₹44.84 crores in 2019 to ₹51.17 crores in 2025. Shareholders’ funds increased correspondingly, reaching ₹56.88 crores by March 2025, indicating retained earnings accumulation despite profit fluctuations.
The company maintains a debt-free status throughout the period, with no long-term or short-term borrowings reported. This conservative capital structure reduces financial risk and interest burden, supporting operational stability.
Asset composition shows a declining net block from ₹2.73 crores in 2020 to ₹1.30 crores in 2025, suggesting limited capital expenditure or asset disposals. Current assets remained robust, with cash and bank balances notably increasing to ₹39.33 crores in 2025, providing strong liquidity. Inventories and sundry debtors fluctuated but remained manageable, supporting working capital needs.
Cash Flow Analysis
Cash flow from operating activities has been inconsistent, with a significant positive inflow of ₹24 crores in 2025 contrasting with a negative outflow of ₹25 crores in 2024. These swings reflect changes in working capital, which saw a large increase in 2025 after a substantial decrease the previous year. Investing activities contributed marginally positive cash flows in 2025, while financing activities remained neutral, consistent with the absence of debt.
Overall, the company’s net cash position improved markedly in 2025, with closing cash and cash equivalents rising to ₹39 crores, up from ₹13 crores in 2024, underscoring enhanced liquidity and financial flexibility.
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Summary and Outlook
In summary, Poona Dal & Oil’s historical performance reflects a company navigating a challenging market environment with fluctuating revenues and compressed margins. Despite these headwinds, the firm has maintained profitability, strengthened its equity base, and preserved a debt-free balance sheet. The significant liquidity build-up in recent years provides a cushion for future operational needs or strategic initiatives.
Investors should weigh the company’s stable financial foundation against the volatility in sales and profitability when considering its prospects. The edible oil sector’s inherent cyclicality and input cost pressures remain key factors influencing future performance.
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