Revenue and Profitability Trends
Over the past seven years, Riba Textiles has seen its net sales rise from under ₹200 crores to nearly ₹296 crores in the fiscal year ending March 2025. This consistent increase reflects the company’s ability to expand its market presence and scale operations effectively. Total operating income followed a similar upward trend, with no other operating income reported, indicating reliance on core textile operations.
Raw material costs have naturally increased in line with sales, rising from just over ₹103 crores in 2019 to nearly ₹178 crores in 2025. Employee costs have also grown steadily, reflecting possible workforce expansion or wage inflation. Other expenses have shown a gradual increase, reaching close to ₹71 crores in the latest fiscal year.
Operating profit before depreciation and interest (PBDIT) excluding other income has improved from approximately ₹17 crores in 2019 to over ₹22 crores in 2025, signalling enhanced operational efficiency. However, operating profit margins have slightly contracted from around 8.6% in 2019 to 7.5% in 2025, suggesting rising costs have somewhat offset revenue gains.
Profit after tax (PAT) has fluctuated but generally trended upwards, with the latest figure at ₹8.5 crores compared to ₹8.2 crores in 2019. The PAT margin has seen a decline from over 4% to under 3%, indicating margin pressures possibly due to increased interest and depreciation expenses. Earnings per share have mirrored this trend, rising from ₹8.51 to ₹8.81 over the period.
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Balance Sheet and Financial Position
Riba Textiles’ shareholder funds have grown steadily from ₹63.3 crores in 2020 to nearly ₹98 crores in 2025, supported by rising reserves. The company’s book value per share has increased from ₹65.58 in 2020 to over ₹101 in 2025, reflecting enhanced net asset value per share and strengthening equity base.
Total liabilities have increased in line with asset growth, reaching ₹181.45 crores in 2025. Long-term borrowings have decreased from a peak of over ₹44 crores in 2020 to around ₹26 crores in 2025, indicating some deleveraging. Short-term borrowings remain significant but have fluctuated moderately over the years.
On the asset side, net block (fixed assets net of depreciation) has expanded from ₹76.31 crores in 2020 to nearly ₹100 crores in 2025, signalling ongoing capital investment. Current assets have also increased, with inventories and sundry debtors rising steadily, consistent with business expansion. Cash and bank balances have remained modest but stable.
Cash Flow Analysis
Operating cash flow has shown improvement, rising from ₹11 crores in 2020 to ₹20 crores in 2024, indicating better cash generation from core operations. Investing activities have consistently been cash outflows, reflecting capital expenditure and asset purchases. Financing activities have mostly been cash outflows, suggesting debt repayments and possibly dividend payments.
Net cash inflows have been positive in recent years, with a small increase in cash and cash equivalents, supporting liquidity. The company’s ability to generate operating cash flow above ₹20 crores in the latest year highlights operational robustness despite margin pressures.
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Summary and Outlook
In summary, Riba Textiles has exhibited consistent revenue growth and an expanding asset base over the last several years. While profitability margins have experienced some compression, the company maintains positive net profits and steady earnings per share growth. The balance sheet shows a healthy increase in net worth and a controlled reduction in long-term debt, which bodes well for financial stability.
Cash flow generation from operations has strengthened, supporting ongoing investments and debt servicing. Investors should note the margin pressures and moderate leverage as factors to monitor going forward. Overall, Riba Textiles’ historical performance reflects a company in growth mode with improving fundamentals, though with some challenges in cost management and profitability margins.
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