How has been the historical performance of Prime Urban?

Answer:The historical performance of Prime Urban shows a significant decline in net sales and overall financial health over the years, culminating in a net profit of 1.25 crore for the year ending March 2025, a recovery from a loss of 2.04 crore in March 2024. The company's net sales dropped from 151.90 crore in March 2019 to just 3.59 crore in March 2025, reflecting a downward trend in revenue generation. The total operating income followed a similar trajectory, decreasing from 151.90 crore in March 2019 to 3.59 crore in March 2025. The operating profit margin, which was negative in previous years, improved to -2.23% in March 2025 from -13.36% in March 2024. The company also reported a gross profit margin of 53.48% in March 2025, a notable recovery from the previous year's -16.93%.

In terms of assets and liabilities, total assets decreased from 42.50 crore in March 2020 to 13.25 crore in March 2025, while total liabilities also fell from 39.29 crore in March 2020 to 17.07 crore in March 2025. The company's shareholder's funds remained negative, at -3.07 crore in March 2025, although it improved from -3.77 crore in March 2024. The cash flow from operating activities showed a positive trend, increasing to 2.00 crore in March 2025 from 1.00 crore in March 2024. Overall, while Prime Urban has shown signs of recovery in profitability and cash flow, the long-term decline in sales and asset values raises concerns about its future sustainability.

Breakdown:
Prime Urban's financial performance has been marked by a steep decline in net sales, which fell from 151.90 crore in March 2019 to just 3.59 crore in March 2025. This decline in revenue is mirrored by a decrease in total operating income, which also dropped significantly over the years. Despite these challenges, the company managed to report a profit after tax of 1.25 crore in March 2025, a notable improvement from the losses recorded in previous years. The operating profit margin showed a positive shift, moving from -13.36% in March 2024 to -2.23% in March 2025, indicating a potential turnaround in operational efficiency. However, total assets have decreased sharply from 42.50 crore in March 2020 to 13.25 crore in March 2025, while total liabilities have also declined, suggesting a tightening of the company's financial position. The cash flow from operating activities has improved, reflecting a more favorable cash position, yet the persistent negative shareholder's funds highlight ongoing financial challenges that the company must address moving forward.