How has been the historical performance of Retro Green?

Revenue and Profitability Overview

For the fiscal year ending March 2025, Retro Green reported total operating income of ₹2.16 crores, entirely derived from net sales, with no other operating income recorded. The company’s expenditure profile shows a significant portion allocated to the purchase of finished goods, amounting to ₹1.85 crores, while employee costs stood at ₹0.27 crores. Other expenses contributed ₹0.62 crores, and there was a negative stock adjustment of ₹0.23 crores, indicating an increase in inventory levels.

Despite total expenditure excluding depreciation exceeding operating income at ₹2.51 crores, Retro Green managed to post a positive operating profit (PBDIT) of ₹0.16 crores after factoring in other income of ₹0.51 crores. This translated into a modest profit before tax of ₹0.08 crores and a net profit after tax of ₹0.06 crores, reflecting a PAT margin of 2.78%. The operating profit margin excluding other income was negative at -16.2%, signalling operational challenges, though the gross profit margin was a healthier 7.41%.

Balance Sheet and Capital Structure

Retro Green’s balance sheet shows substantial growth in shareholder funds, rising from ₹8.80 crores in March 2024 to ₹56.00 crores in March 2025. This increase was driven by a significant rise in share capital from ₹9.04 crores to ₹38.00 crores and a turnaround in reserves from a negative ₹0.24 crores to a positive ₹18.00 crores. The company’s total liabilities expanded accordingly, reaching ₹57.06 crores, up from ₹9.22 crores the previous year.

Long-term borrowings remained relatively low at ₹0.54 crores, with no secured loans reported, indicating a conservative debt profile. Current liabilities increased modestly to ₹0.48 crores. On the asset side, Retro Green’s total assets grew substantially to ₹57.06 crores, supported by a rise in non-current investments from ₹5.37 crores to ₹46.37 crores and an increase in net block assets to ₹2.00 crores. Current assets also improved, reaching ₹5.63 crores, bolstered by higher sundry debtors and cash balances.

Cash Flow and Financial Stability

Cash flow statements indicate that Retro Green generated ₹12.00 crores from operating activities in the year ending March 2025, despite no profit before tax being recorded. This positive cash flow was largely due to adjustments amounting to ₹18.00 crores and changes in working capital that reduced cash by ₹6.00 crores. Financing activities saw an outflow of ₹12.00 crores, balancing the net cash inflow and outflow to zero for the period. The company maintained a stable cash and bank balance of ₹0.58 crores by the end of the fiscal year.

Book value per share improved significantly to ₹14.74 from ₹9.73, reflecting enhanced net asset value and shareholder equity. The earnings per share remained low at ₹0.02, consistent with the modest net profit reported.

Summary of Historical Performance

Overall, Retro Green’s historical performance over the latest fiscal year shows a company with limited revenue but improving financial foundations. The rise in equity capital and reserves, alongside prudent debt management, suggests a strengthening balance sheet. However, operational profitability remains a challenge, as indicated by the negative operating margin excluding other income. The company’s ability to generate positive cash flow from operations despite slim profits is a positive sign, though investors should monitor future revenue growth and cost control measures closely.

Retro Green’s financial trajectory points to cautious optimism, with a need for sustained operational improvements to translate balance sheet strength into consistent profitability and shareholder returns.

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