How has been the historical performance of Rex Sealing?

Answer:The historical performance of Rex Sealing shows a steady increase in net sales and overall operating income over the past five years, culminating in net sales of 34.80 Cr in March 2025, up from 30.61 Cr in March 2024, and significantly higher than 21.08 Cr in March 2022. The total expenditure has also risen, reaching 31.59 Cr in March 2025, which reflects the increasing raw material costs that rose to 22.94 Cr from 18.65 Cr the previous year. Operating profit, however, has shown fluctuations, with a decline to 3.49 Cr in March 2025 from 4.40 Cr in March 2024, while profit before tax decreased to 2.41 Cr from 3.58 Cr in the same period. Profit after tax also saw a decline to 1.93 Cr in March 2025 from 2.45 Cr in March 2024. The company's total assets increased to 32.64 Cr in March 2025, up from 21.12 Cr in March 2024, driven by a rise in current assets, particularly inventories and short-term loans and advances. Total liabilities also rose to 32.64 Cr, with long-term borrowings significantly increasing to 10.74 Cr from 2.41 Cr in the previous year.

Breakdown:
Rex Sealing has demonstrated a consistent growth trajectory in net sales, which increased from 17.14 Cr in March 2021 to 34.80 Cr in March 2025. This growth in revenue was accompanied by rising total operating income, which reached 34.80 Cr in March 2025. However, the company faced rising costs, particularly in raw materials, which surged to 22.94 Cr, impacting operating profit margins that dropped to 9.22% in March 2025 from 14.18% in March 2024. Despite the increase in sales, profit before tax and profit after tax both declined, indicating pressure on profitability. The total assets of the company rose significantly to 32.64 Cr, reflecting an increase in current assets, while total liabilities also increased, primarily due to higher long-term borrowings. This financial scenario illustrates the challenges Rex Sealing faces in maintaining profitability amidst rising costs and expanding operations.