Revenue and Profit Growth Over the Years
Premier Polyfilm’s net sales have shown a robust upward trend, rising from approximately ₹150 crores in FY19 to ₹260 crores by FY25. This represents a near 73% increase over six years, reflecting the company’s expanding market presence and operational scale. Total operating income, which includes other operating income, followed a similar pattern, reaching ₹262 crores in FY25 from ₹152 crores in FY21, indicating stable supplementary revenue streams.
Operating profit before depreciation and interest (PBDIT) has also improved significantly, climbing from ₹12.75 crores in FY19 to ₹34.47 crores in FY25. This growth in operating profit margin, which rose to 13.25% in FY25 from 8.47% in FY19, underscores enhanced operational efficiency and cost management. Profit after tax (PAT) mirrored this positive trend, increasing from ₹4.46 crores in FY19 to ₹20.60 crores in FY25, with the PAT margin improving to 7.92% in the latest fiscal year.
Only 1% make it here. This Large Cap from the Gems, Jewellery And Watches sector passed our rigorous filters with flying colors. Be among the first few to spot this gem!
- - Highest rated stock selection
- - Multi-parameter screening cleared
- - Large Cap quality pick
Cost Structure and Margins
The company’s raw material costs have fluctuated, peaking at ₹173 crores in FY23 before moderating to ₹155 crores in FY25. Despite this volatility, Premier Polyfilm has maintained disciplined control over other expenses, including employee costs which rose moderately from ₹14.26 crores in FY19 to ₹24.77 crores in FY25, reflecting workforce expansion aligned with business growth. Other expenses also increased but remained proportionate to revenue growth.
Interest expenses have declined from ₹3.12 crores in FY19 to ₹2.04 crores in FY25, indicating a reduction in debt servicing costs. This has contributed positively to the company’s gross profit before tax, which more than tripled from ₹9.63 crores in FY19 to ₹32.43 crores in FY25.
Balance Sheet Strength and Asset Management
Premier Polyfilm’s shareholder funds have grown substantially, from ₹46 crores in FY20 to nearly ₹118 crores in FY25, supported by rising reserves that more than tripled over the period. The company has successfully reduced long-term borrowings to zero by FY25, signalling a stronger financial position and lower leverage risk. However, short-term borrowings remain at ₹15.42 crores in FY25, up from zero in FY22, which may warrant monitoring.
On the asset side, net block value increased steadily to ₹56 crores in FY25, reflecting ongoing capital investments. Current assets have also expanded, reaching ₹95 crores in FY25, driven by higher inventories and sundry debtors, which align with the company’s growing operations. Net current assets improved to ₹57 crores, indicating healthy liquidity and working capital management.
Why settle for Premier Polyfilm? SwitchER evaluates this Plastic Products - Industrial Microcap against peers, other sectors, and market caps to find you superior investment opportunities!
- - Comprehensive evaluation done
- - Superior opportunities identified
- - Smart switching enabled
Cash Flow and Financial Stability
Cash flow from operating activities has shown a positive trajectory, increasing from ₹7 crores in FY20 to ₹23 crores in FY25. Despite some fluctuations in cash flow from investing and financing activities, the company managed a net positive cash inflow of ₹6 crores in FY25, improving its cash and bank balances to nearly ₹11 crores. This reflects prudent cash management and a capacity to fund operations and investments internally.
Overall, Premier Polyfilm’s historical performance reveals a company that has steadily expanded its revenue base and profitability while strengthening its balance sheet and maintaining healthy cash flows. The reduction in long-term debt and growth in reserves enhance its financial resilience, positioning it well for future growth opportunities.
Conclusion
Premier Polyfilm’s financial journey over the past six years illustrates consistent growth in sales and profits, improved operating margins, and a solidifying balance sheet. Investors may find the company’s disciplined cost control, expanding shareholder equity, and positive cash flow trends encouraging. While short-term borrowings have increased recently, the overall financial health remains robust, supporting confidence in its ongoing operational and strategic initiatives.
Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
