How has been the historical performance of Ruby Mills?

Revenue and Profitability Trends

Looking back to the fiscal year ending March 2019, Ruby Mills reported consolidated net sales of ₹2.52 crores, with no other operating income recorded. The company’s operating profit margin stood at 7.94%, while the profit after tax margin was 5.95%, reflecting modest but positive profitability. Earnings per share (EPS) for that period were ₹0.12, with diluted EPS at ₹0.25, indicating a reasonable return for shareholders given the scale of operations.

Profit before tax for the standalone entity has shown an upward trend over the last six years, rising from ₹37 crores in March 2020 to ₹53 crores in March 2025. This steady increase underscores the company’s ability to enhance earnings despite market challenges. However, operating cash flow has been more volatile, with a notable negative figure of ₹35 crores in March 2025, contrasting with positive cash flows in earlier years. This suggests working capital management and operational liquidity require close monitoring.

Balance Sheet and Capital Structure

Ruby Mills’ balance sheet reveals a consistent increase in shareholder’s funds, which grew from ₹473.10 crores in March 2020 to ₹636.68 crores by March 2025. This growth is primarily driven by rising reserves, which have more than tripled over the same period, indicating strong retained earnings and capital accumulation. The company’s share capital doubled in March 2022, reflecting possible equity infusion or stock restructuring.

On the liabilities side, total debt has shown a declining trend from ₹394.48 crores in March 2021 to ₹327.61 crores in March 2025. Long-term borrowings have decreased significantly, while short-term borrowings have also reduced, suggesting a gradual deleveraging strategy. Total liabilities have fluctuated but remain broadly stable around the ₹1,000 crore mark, balancing growth with financial prudence.

Asset-wise, total assets peaked at over ₹1,048 crores in March 2021 before settling at approximately ₹1,038 crores in March 2025. The company’s net block, representing fixed assets, has more than doubled since March 2021, signalling ongoing capital expenditure and asset base expansion. Capital work in progress has decreased from a high in 2021, indicating project completions or capitalisation of assets.

Cash Flow and Liquidity Analysis

Cash flow patterns for Ruby Mills have been mixed. While cash flow from operating activities was positive in most years, it turned negative in the latest fiscal year, reflecting increased working capital requirements or operational challenges. Investing activities have generally involved outflows, consistent with capital expenditure and asset investments. Financing activities have varied, with a significant inflow of ₹103 crores in March 2025, likely linked to debt or equity financing to support growth initiatives.

Closing cash and cash equivalents have declined sharply from ₹80 crores in March 2023 to just ₹4 crores in March 2025, highlighting tighter liquidity conditions. This reduction warrants attention as it may impact the company’s ability to meet short-term obligations without additional financing.

Summary of Historical Performance

Overall, Ruby Mills has exhibited a solid growth trajectory in terms of equity and reserves, supported by a stable asset base and a gradual reduction in debt levels. Profitability metrics have remained positive, though modest, with consistent profit before tax growth. The company’s investment in fixed assets and capital work in progress indicates a focus on expansion and capacity enhancement.

However, the recent decline in operating cash flow and cash reserves signals potential liquidity pressures that investors should monitor closely. The balance between financing inflows and operational cash requirements will be critical for sustaining growth momentum. Given these factors, Ruby Mills presents a mixed but generally positive historical performance profile, with opportunities and risks that merit careful consideration by stakeholders.

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