Revenue and Operating Income Trends
Over the seven-year period ending March 2025, Seasons Textiles’ net sales have demonstrated notable volatility. The company recorded its highest sales in fiscal 2019 at ₹37.52 crores, followed by a decline to ₹17.12 crores in 2021, reflecting a significant contraction likely influenced by external market conditions. Sales rebounded moderately thereafter, reaching ₹27.30 crores in 2025. Total operating income mirrored this pattern, with no other operating income reported, indicating reliance solely on core sales activities.
Despite the recovery in sales post-2021, the company has not regained its earlier peak revenue levels. This uneven sales performance underscores challenges in maintaining consistent market demand or operational capacity.
Cost Structure and Expenditure Analysis
Seasons Textiles’ cost of raw materials has generally increased in line with sales recovery, rising from ₹4.38 crores in 2021 to ₹9.65 crores in 2025. Purchase of finished goods, which was substantial in 2019 and 2020, sharply declined to negligible levels in subsequent years, suggesting a strategic shift towards in-house production or inventory management changes. Employee costs have steadily increased from ₹3.92 crores in 2021 to ₹5.17 crores in 2025, reflecting either workforce expansion or wage inflation.
Other expenses have also escalated, reaching ₹9.51 crores in 2025 from ₹5.50 crores in 2021, contributing to the overall rise in total expenditure, which stood at ₹24.01 crores in 2025. The company’s expenditure management appears to have tightened compared to the peak years but remains significant relative to revenue.
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Profitability and Margins
The operating profit before depreciation and interest (PBDIT) excluding other income has declined from ₹5.76 crores in 2019 to ₹3.29 crores in 2025, reflecting margin pressures. Operating profit margins have contracted from 15.35% in 2019 to 12.05% in 2025, with a peak margin of 21.67% in 2021 during the low sales year, indicating some operational leverage.
Interest expenses have remained consistently high, around ₹2.3 to ₹3.1 crores annually, which has eroded gross profits and contributed to negative profit before tax (PBT) figures since 2020. The company reported a PBT loss of ₹0.31 crores in 2025, continuing a trend of losses after a modest profit in 2019.
Consequently, profit after tax (PAT) has been negative for six consecutive years, with a loss of ₹0.34 crores in 2025. The PAT margin has deteriorated from a positive 0.93% in 2019 to a negative 1.25% in 2025. Earnings per share have followed suit, turning negative after 2019 and reaching a low of -₹0.45 in 2025.
Balance Sheet and Equity Position
The company’s equity capital has remained stable at ₹7.49 crores throughout the period, with reserves declining from ₹29.23 crores in 2019 to ₹14.03 crores in 2025. This reduction in reserves signals accumulated losses impacting the net worth of the company.
Cash Flow Overview
Although detailed recent cash flow data is unavailable, consolidated cash flow figures from earlier years indicate modest operating cash inflows and net positive cash movements. For instance, in fiscal 2008, cash flow from operating activities was ₹0.96 crores, with net cash inflow of ₹0.50 crores, suggesting some liquidity management capability despite profitability challenges.
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Summary of Historical Performance
Seasons Textiles has faced a challenging financial journey characterised by fluctuating sales, rising costs, and persistent losses over the past several years. While the company managed to recover sales after a low in 2021, profitability remains elusive due to high interest costs and increasing expenses. The erosion of reserves and negative earnings per share highlight ongoing financial stress. Investors should weigh these factors carefully against the company’s operational trends and market conditions when considering its prospects.
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