Revenue and Operating Income Trends
Ramsons Projects’ net sales have shown a marked decline from ₹1.12 crore in March 2009 to just ₹0.13 crore by March 2011. Other operating income, however, exhibited volatility, rising sharply to ₹0.52 crore in March 2010 before settling at ₹0.15 crore in March 2011. Consequently, total operating income peaked at ₹1.27 crore in March 2010 but dropped significantly to ₹0.28 crore in the latest fiscal year. This contraction in top-line performance reflects a challenging market environment or operational constraints impacting the company’s core business activities.
Cost Structure and Expenditure Analysis
The company’s expenditure profile reveals some notable shifts. Raw material costs, which were ₹0.30 crore in March 2009, increased to ₹0.45 crore in March 2010 but were absent in March 2011, suggesting a possible change in operational focus or inventory management. Employee costs doubled from ₹0.12 crore in March 2010 to ₹0.24 crore in March 2011, indicating increased staffing or wage pressures despite declining revenues. Manufacturing expenses remained steady at ₹0.38 crore in 2009 and 2010 but reduced to ₹0.18 crore in 2011. Overall, total expenditure excluding depreciation decreased from ₹1.00 crore in March 2010 to ₹0.42 crore in March 2011, aligning with the reduced scale of operations.
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Profitability and Margins
Operating profit before depreciation and interest (PBDIT) excluding other income declined sharply from a positive ₹0.27 crore in March 2010 to a negative ₹0.14 crore in March 2011. This downturn was mirrored in the gross profit before depreciation and tax (PBDT), which swung from a modest profit of ₹0.16 crore in 2010 to a loss of ₹0.27 crore in 2011. Interest expenses increased marginally to ₹0.13 crore in 2011, further pressuring profitability. The company reported a loss before tax of ₹0.28 crore in March 2011, reversing from profits in the previous two years. After accounting for taxes, Ramsons Projects posted a net loss of ₹0.34 crore in 2011, compared to profits of ₹0.14 crore and ₹0.15 crore in 2010 and 2009 respectively.
Margins reflect this deterioration starkly. The operating profit margin excluding other income dropped from 21.37% in 2010 to -50.18% in 2011, while the profit after tax margin plunged from 11.04% to -121.2% over the same period. Earnings per share followed suit, falling from ₹1.70 in 2010 to a negative ₹1.13 in 2011, signalling a challenging year for shareholders.
Cash Flow and Financial Position
Despite the profit decline, Ramsons Projects maintained a positive net cash inflow of ₹0.15 crore in March 2011, supported by a healthy cash flow from investing activities amounting to ₹0.88 crore. This contrasts with a negative investing cash flow of ₹2.05 crore in the prior year, indicating a possible divestment or asset realisation. Operating cash flow was nearly neutral at -₹0.00 crore in 2011, a slight improvement from a negative ₹0.06 crore in 2010. Financing activities saw an outflow of ₹0.73 crore in 2011, reversing the inflow of ₹3.31 crore in 2010. The company’s cash and cash equivalents increased modestly to ₹2.55 crore by March 2011, up from ₹2.40 crore the previous year, providing some liquidity cushion.
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Equity and Reserves
The company’s equity capital remained stable at ₹3.01 crore throughout the period, with a face value of ₹10 per share. Notably, reserves increased significantly from ₹0.28 crore in 2010 to ₹4.66 crore in 2011, which may reflect retained earnings or other comprehensive income adjustments despite the net loss reported in the latest year. Public shareholding hovered around 46%, indicating a consistent shareholder base without promoter pledging.
Summary of Historical Performance
In summary, Ramsons Projects has faced a challenging period marked by declining revenues and profitability in the fiscal year ending March 2011. While the company managed to maintain liquidity and improve reserves, the sharp contraction in operating income and net profit margins highlights operational and market pressures. The negative earnings per share and operating losses in 2011 contrast with modest profits in the preceding years, signalling a need for strategic reassessment to restore growth and profitability.
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