How has been the historical performance of Sarda Proteins?

Revenue and Operating Performance Trends

Over the past seven years, Sarda Proteins’ net sales have demonstrated considerable volatility. The company recorded ₹24.19 crores in net sales for the fiscal year ending March 2025, a sharp increase from ₹1.30 crores in the previous year. This surge follows a period of fluctuating sales, with figures ranging between ₹5.40 crores and ₹11.36 crores from 2019 to 2022. The absence of other operating income throughout this period indicates that the company’s revenue is primarily derived from its core operations.

Despite the revenue fluctuations, the company’s total expenditure excluding depreciation closely tracks its operating income, reflecting a tight cost structure. Purchase of finished goods consistently represents the largest expense, accounting for nearly the entirety of operating costs each year. Employee costs remain minimal, hovering below ₹0.20 crores annually, while other expenses have shown minor variations but remain relatively low.

Operating profit margins have been modest and inconsistent. The company posted a marginal operating profit margin of 0.08% in March 2025, following negative margins in the two preceding years. The highest operating margin was 2.51% in March 2022, coinciding with a peak in operating profit before other income. Other income has contributed positively but modestly to operating profit, which remained low overall.

Profitability and Earnings Per Share

Profit after tax (PAT) has mirrored the company’s operating performance, with positive results in some years and losses in others. The fiscal year ending March 2022 was the most profitable, with a PAT of ₹0.31 crores and a PAT margin of 2.88%. Conversely, losses were recorded in 2019, 2021, and 2023, with the lowest PAT margin at -1.68% in 2019. Earnings per share (EPS) have similarly fluctuated, peaking at 1.79 in 2022 and falling into negative territory in 2019 and 2023. The diluted EPS follows the same trend, indicating consistent shareholder dilution effects.

Notably, the company has maintained zero interest expenses and no exceptional items throughout the period, suggesting a debt-free capital structure and absence of extraordinary financial events. This is further supported by the balance sheet data showing no long-term or short-term borrowings.

Balance Sheet and Asset Position

Sarda Proteins’ balance sheet reflects a stable equity base with share capital remaining constant at ₹2.50 crores over the years. Shareholders’ funds have gradually increased from ₹2.08 crores in 2021 to ₹2.38 crores in 2025, despite negative reserves persisting throughout the period. The company’s total liabilities have risen moderately, reaching ₹2.53 crores in 2025, but without any debt, indicating reliance on equity and internal accruals for financing.

Asset-wise, the company holds no significant fixed assets or capital work in progress, with net block values close to zero. Current assets have increased steadily, reaching ₹2.53 crores in 2025, primarily driven by short-term loans and advances, which grew from ₹0.91 crores in 2020 to ₹2.49 crores in 2025. Cash and bank balances remain minimal, reflecting limited liquidity reserves. Sundry debtors have declined over time, suggesting improved receivables management or reduced credit sales.

Cash Flow and Liquidity

Cash flow data for Sarda Proteins is notably absent, with no reported cash inflows or outflows from operating, investing, or financing activities in recent years. This lack of reported cash flow activity may indicate either a stable cash position with minimal transactions or incomplete disclosures. The company’s cash and cash equivalents have remained low, with closing balances around ₹0.03 crores in 2025, underscoring limited cash reserves.

Summary and Investor Considerations

In summary, Sarda Proteins has experienced a volatile financial journey characterised by fluctuating revenues and marginal profitability. The company’s cost structure is heavily weighted towards the purchase of finished goods, with minimal employee and other operating expenses. Its debt-free status and stable equity base provide a solid foundation, although persistent negative reserves and low cash balances highlight potential financial constraints.

Investors should note the irregular earnings performance and limited asset base, which may impact the company’s ability to scale operations or absorb market shocks. The absence of detailed cash flow information warrants caution, as liquidity management remains unclear. Overall, while recent revenue growth is encouraging, the company’s historical performance suggests a need for careful analysis before investment decisions.

Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →