Revenue and Profitability Trends
Rajputana Invest's total operating income experienced a significant peak in the fiscal year ending March 2015, reaching over ₹12 crores. However, this was followed by a sharp decline in subsequent years, with revenues dropping to under ₹3 crores by March 2017. The company's net sales mirrored this pattern, indicating a contraction in core business activities after 2015.
Operating profit margins have been notably volatile. In 2014, the company reported an exceptionally high operating profit margin exceeding 40%, but this figure plummeted to negative territory in 2015, reflecting operational challenges. By 2017, margins had marginally recovered to a positive but minimal level, indicating a fragile return to profitability.
Profit after tax (PAT) followed a similar trajectory. After a positive PAT in 2014, the company faced losses in 2015 and 2016, with a slight return to a small profit in 2017. Earnings per share (EPS) data corroborate this trend, showing a negative EPS in 2015 and 2016 before a modest positive EPS in 2017. These fluctuations suggest that Rajputana Invest has struggled to maintain consistent profitability but has shown tentative signs of recovery.
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Balance Sheet and Financial Position
The company's shareholder funds have remained relatively stable, hovering around ₹3.1 crores from 2015 to 2017, a substantial increase from ₹0.31 crores in 2014. This growth reflects accumulated reserves and equity capital increases over the period. Notably, Rajputana Invest has maintained a debt-free status throughout these years, with no long-term or short-term borrowings reported, which is a positive indicator of financial prudence.
On the asset side, total assets have consistently matched liabilities, standing at approximately ₹3.1 crores in recent years. Current assets constitute the majority, with cash and bank balances fluctuating but declining to ₹0.03 crores by March 2017 from ₹0.83 crores in the previous year. Inventories and short-term loans and advances form a significant portion of current assets, indicating operational activity and working capital deployment.
Book value per share has remained steady, around ₹10, reflecting the stable net asset base despite earnings volatility. The company’s reserves have shown minor fluctuations but generally increased, supporting the equity base.
Cash Flow Analysis
Cash flow from operating activities has been negative in the last two fiscal years, with outflows exceeding ₹1 crore in 2017. This negative cash flow is primarily due to adverse changes in working capital, signalling challenges in managing receivables, inventories, or payables efficiently. Conversely, cash flow from investing activities has been positive in recent years, suggesting asset disposals or reduced capital expenditure.
Financing activities have been largely inactive since 2015, with no new borrowings or equity infusions recorded. The net cash position has declined, with closing cash and cash equivalents dropping sharply to ₹0.03 crores in 2017 from ₹0.83 crores in 2016, underscoring liquidity pressures.
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Summary and Outlook
Rajputana Invest's historical performance reflects a company that experienced a peak in revenue and profitability around 2015 but subsequently faced operational and financial challenges. The return to a marginal profit in 2017 is a positive sign, though the low operating and PAT margins indicate limited earnings power. The absence of debt and a stable equity base provide a solid foundation, but the declining cash reserves and negative operating cash flows highlight liquidity concerns that require attention.
Investors analysing Rajputana Invest should weigh its modest recovery against the backdrop of past volatility and closely monitor future earnings consistency and cash flow improvements. The company’s ability to manage working capital and sustain profitability will be critical to its long-term financial health.
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