How has been the historical performance of Savera Industrie?

Revenue and Operating Income Growth

Over the seven-year period ending March 2015, Savera Industrie’s net sales exhibited a consistent upward trend, rising from ₹39.64 crores in 2009 to ₹62.40 crores in 2015. This represents a compound growth trajectory, with notable increases particularly between 2010 and 2015. Other operating income, while generally modest, contributed variably to total operating income, peaking at ₹3.03 crores in 2012 before stabilising at lower levels in subsequent years. Consequently, total operating income followed a similar growth pattern, reaching ₹63.11 crores in 2015 from ₹39.64 crores in 2009.

Cost Structure and Profitability Margins

The company’s expenditure profile reveals rising raw material costs and employee expenses, reflecting operational scaling and inflationary pressures. Raw material costs increased from ₹6.40 crores in 2009 to ₹8.79 crores in 2015, while employee costs more than doubled from ₹7.32 crores to ₹16.73 crores over the same period. Manufacturing expenses also rose significantly, indicating expanded production activities. Despite these cost increases, Savera Industrie maintained a relatively stable operating profit margin (excluding other income), averaging around 20% in recent years, though this was down from a peak exceeding 27% in 2011 and 2012.

Profitability Trends and Earnings

Operating profit before depreciation and interest (PBDIT) showed resilience, with figures hovering around ₹12 crores in 2015, slightly down from a peak of nearly ₹15 crores in 2012. Interest expenses fluctuated but remained a significant cost, impacting gross profit before depreciation and tax. Depreciation charges increased steadily, reflecting asset additions or revaluations. Profit before tax declined from ₹8.99 crores in 2012 to ₹3.86 crores in 2015, signalling margin pressures. The company’s profit after tax mirrored this trend, with a notable loss in 2014 but a return to profitability in 2015 at ₹2.79 crores. Earnings per share followed a similar pattern, peaking at 5.72 in 2012 before falling to 2.34 in 2015, with a negative EPS in 2014.

Cash Flow and Financial Health

Cash flow from operating activities remained positive and relatively stable, ranging from ₹11.24 crores in 2010 to ₹12.37 crores in 2015. Investing activities consistently reflected cash outflows, indicative of ongoing capital expenditure or acquisitions. Financing activities showed mixed trends, with outflows in most years except for a positive inflow in 2011. The net cash inflow/outflow fluctuated, with a significant negative outflow in 2013 but positive inflows in other years. Closing cash and cash equivalents increased from ₹0.88 crores in 2010 to ₹2.22 crores in 2015, suggesting improved liquidity management.

Shareholding and Market Metrics

Public shareholding remained fairly stable around 39% in recent years, with no pledged promoter holdings reported. The company’s reserves were recorded at ₹23.81 crores in 2012 but showed no further additions in subsequent years. Operating profit margins and PAT margins have experienced volatility, with PAT margin dropping to negative in 2014 before recovering to 4.43% in 2015.

Summary and Outlook

In summary, Savera Industrie’s historical performance reflects a company that has grown its top line steadily while facing challenges in sustaining consistent profitability. The fluctuations in profit margins and earnings per share highlight operational and market pressures, yet the company’s ability to maintain positive operating cash flows and improve liquidity is a positive indicator. Investors should weigh the company’s growth potential against its margin volatility and capital expenditure commitments when considering its future prospects.

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