Revenue and Profitability Trends
Pratik Panels’ net sales have shown a significant upward trajectory, rising from negligible levels in the early years to ₹3.06 crores in the fiscal year ending March 2025. The company recorded ₹0.31 crores in net sales in March 2023, which increased to ₹2.59 crores in March 2024, and further to ₹3.06 crores in March 2025. This growth reflects the company’s expanding operational scale and market presence.
Operating profit margins, excluding other income, peaked at 22.58% in March 2023 but moderated to 15.83% in March 2024 and further to 1.96% in March 2025. Despite this decline in margin percentage, the absolute operating profit improved, supported by increased sales volume. The gross profit margin followed a similar pattern, standing at 9.68% in March 2023, rising to 18.15% in March 2024, and settling at 8.82% in March 2025.
Profit after tax (PAT) margins also reflected this trend, with a peak of 18.15% in March 2024 and a subsequent decrease to 8.5% in March 2025. The company moved from losses in earlier years, with negative PAT in March 2021 and 2022, to positive earnings in recent years, reporting ₹0.26 crores PAT in March 2025. Earnings per share (EPS) mirrored this recovery, improving from negative values in earlier years to a positive ₹0.04 in March 2025.
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Cost Structure and Expenses
The company’s cost of goods sold primarily comprises purchases of finished goods, which stood at ₹1.94 crores in March 2025, down from ₹2.89 crores in March 2024. The inventory adjustments have fluctuated, with an increase of ₹0.92 crores in March 2025 following a decrease of ₹0.92 crores in the previous year. Employee costs have remained relatively stable, averaging around ₹0.06 crores annually in recent years. Other expenses have gradually decreased from ₹0.43 crores in March 2021 to ₹0.08 crores in March 2025, indicating improved cost control measures.
Interest expenses have been minimal, with a slight charge of ₹0.04 crores in March 2023 and none reported in the latest fiscal year. Exceptional items negatively impacted profits in March 2024 and 2025, with charges of ₹0.18 crores and ₹0.08 crores respectively, which slightly tempered the overall profitability.
Balance Sheet and Financial Position
Pratik Panels’ balance sheet reveals a strengthening financial position over the years. Share capital increased from ₹3.90 crores in March 2022 to ₹6.39 crores in March 2025, reflecting possible equity infusion or restructuring. Shareholders’ funds improved from a negative ₹0.52 crores in March 2022 to a positive ₹6.25 crores in March 2025, signalling a turnaround in net worth.
The company has maintained a low debt profile, with total debt at ₹0.28 crores in March 2025, down from ₹0.49 crores in March 2022. Current liabilities have remained modest, and total liabilities increased slightly to ₹6.56 crores in March 2025, consistent with the growth in assets. Notably, Pratik Panels holds no non-current assets or fixed assets, indicating a business model focused on trading or services rather than capital-intensive operations.
Cash Flow and Liquidity
Cash flow from operating activities has been negative in recent years, with a ₹1 crore outflow in March 2025 and a larger ₹5 crore outflow in March 2023, primarily due to changes in working capital. There has been no reported cash flow from investing activities, consistent with the absence of capital expenditure. Financing activities contributed ₹5 crores in March 2023, likely linked to equity or debt raising to support operations. The company’s cash and bank balances remain low but stable, indicating limited liquidity buffers.
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Summary and Outlook
Overall, Pratik Panels has transitioned from a loss-making entity to a modestly profitable company over the past few years. The steady increase in net sales and positive earnings after tax in the last two fiscal years highlight operational improvements. However, the company’s profitability margins have shown some volatility, and cash flow challenges persist due to working capital demands.
The balance sheet strength has improved significantly, with shareholders’ funds turning positive and debt levels remaining low. The absence of fixed assets suggests a lean asset base, which may limit capital expenditure requirements but also indicates reliance on trading or service activities. Investors should weigh the company’s recent progress against its historical volatility and liquidity constraints when considering its prospects.
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