How has been the historical performance of Sar Televenture?

Revenue and Profit Growth

The company’s net sales have surged impressively, rising from a modest ₹4.73 crores in March 2022 to ₹349.93 crores by March 2025. This exponential increase reflects a robust expansion in business operations and market penetration. Total operating income mirrored this trend, growing in tandem with net sales, as other operating income remained negligible throughout the period.

Operating profit before depreciation and interest (PBDIT) also showed a strong upward trajectory, increasing from ₹0.63 crores in March 2022 to ₹61.66 crores in March 2025. This improvement was supported by a steady operating profit margin, which hovered around 15-17%, indicating efficient cost management despite the rapid scale-up. Profit after tax (PAT) followed suit, rising from a near breakeven ₹0.04 crores in March 2022 to ₹46.90 crores in March 2025, with the PAT margin improving from 0.85% to 13.4% over the same period.

Cost Structure and Margins

The company’s expenditure profile expanded in line with its revenue growth. Raw material costs rose significantly, reflecting increased production scale, while employee costs and other expenses also increased but remained proportionate to revenue. Notably, manufacturing expenses appeared only in the latest fiscal year, indicating possible operational scaling. Despite rising costs, Sar Televenture maintained healthy gross and operating margins, with gross profit margin improving from 9.09% in March 2022 to 17.58% in March 2025, underscoring improved operational efficiency.

Balance Sheet Strength and Capitalisation

Sar Televenture’s balance sheet has strengthened considerably. Shareholder’s funds grew from a negative position in March 2022 to ₹853.79 crores by March 2025, driven by a substantial increase in reserves. The company’s equity capital also expanded, reflecting possible equity infusions or stock restructuring. Total liabilities increased but remained manageable relative to assets, with total assets rising from ₹4.10 crores in March 2022 to ₹946.74 crores in March 2025. Long-term borrowings decreased sharply from ₹177.87 crores in March 2024 to ₹1.15 crores in March 2025, indicating deleveraging efforts. The book value per share improved markedly, signalling enhanced net asset value for shareholders.

Cash Flow and Liquidity

Cash flow from operating activities remained negative in recent years, reflecting working capital investments and business expansion. However, cash flow from financing activities was robust, with significant inflows supporting capital expenditure and operational needs. The company’s closing cash and cash equivalents increased from ₹4 crores in March 2024 to ₹22 crores in March 2025, improving liquidity. Capital work in progress and long-term loans and advances also increased, suggesting ongoing investments in growth initiatives.

Summary of Historical Performance

Over the four-year period analysed, Sar Televenture has transformed from a small-scale operation into a significantly larger enterprise with strong revenue and profit growth. The company’s ability to maintain and improve margins amid rapid expansion is notable. Its balance sheet has become more robust, with increased equity and reduced long-term debt, while liquidity has improved through effective financing activities. These factors collectively indicate a company on a solid growth path, balancing expansion with financial prudence.

Investors analysing Sar Televenture’s historical performance will find a compelling story of growth, operational improvement, and strengthening financial health. However, the negative operating cash flows in recent years suggest the need for continued monitoring of working capital management as the company scales further.

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