How has been the historical performance of Sharpline Broadc?

Revenue and Operating Performance

Sharpline Broadc’s consolidated net sales surged from ₹31.49 crores in March 2024 to ₹57.60 crores in March 2025, reflecting a robust increase of approximately 83%. This growth was accompanied by a rise in total operating income, which matched net sales figures, indicating no other operating income contribution during this period.

However, the company’s expenditure also escalated significantly. Total expenditure excluding depreciation rose from ₹29.49 crores to ₹55.89 crores, driven by increased raw material costs, manufacturing expenses, and employee costs. Manufacturing expenses alone jumped from ₹22.63 crores to ₹36.18 crores, signalling higher operational activity but also increased cost pressures.

Operating profit before depreciation and other income declined from ₹2.00 crores to ₹1.71 crores, despite the revenue growth. The addition of other income, which more than doubled to ₹1.95 crores, helped lift the overall operating profit (PBDIT) to ₹3.66 crores, up from ₹2.82 crores the previous year.

Profitability and Margins

Despite the revenue expansion, Sharpline Broadc’s profitability margins contracted. The operating profit margin excluding other income dropped sharply from 6.35% to 2.97%, while the gross profit margin fell from 8.61% to 5.23%. This margin compression reflects the rising costs outpacing revenue gains.

Profit before tax decreased marginally from ₹2.05 crores to ₹1.85 crores, and profit after tax declined from ₹1.54 crores to ₹1.29 crores. Correspondingly, the consolidated net profit fell from ₹1.54 crores to ₹1.23 crores. Earnings per share (EPS) also reduced from ₹0.92 to ₹0.73, signalling a dip in shareholder returns.

Interest expenses increased notably from ₹0.09 crores to ₹0.65 crores, which may have contributed to the pressure on net profitability. Depreciation charges also rose, reflecting higher asset utilisation or additions.

Balance Sheet and Financial Position

Sharpline Broadc’s total assets grew substantially from ₹42.59 crores to ₹75.36 crores, driven by a significant increase in current assets, which rose from ₹14.80 crores to ₹53.47 crores. This was supported by higher inventories, sundry debtors, and short-term loans and advances, indicating expanded operational scale.

Shareholder’s funds remained relatively stable at around ₹22 crores, with reserves showing a modest increase. The company’s liabilities also increased, with total liabilities rising from ₹42.59 crores to ₹75.36 crores. Notably, trade payables and other current liabilities surged, reflecting increased short-term obligations.

Long-term borrowings were fully repaid, falling from ₹1.08 crores to zero, while short-term borrowings decreased from ₹9.20 crores to ₹2.48 crores, suggesting a shift in the company’s debt profile. The book value per share remained steady at approximately ₹13.12, indicating stable net asset value per share.

Cash Flow Dynamics

Cash flow from operating activities turned negative in March 2025, with an outflow of ₹12 crores compared to a positive inflow of ₹7 crores the previous year. This was largely due to adverse changes in working capital, which swung from a positive ₹6 crores to a negative ₹15 crores, signalling increased capital tied up in operations.

Investing activities generated a positive cash flow of ₹6 crores, reversing the prior year’s outflow, while financing activities contributed ₹7 crores, a turnaround from a ₹7 crores outflow in the previous year. Overall, the company recorded a modest net cash inflow of ₹1 crore, improving its cash and bank balance slightly.

Summary of Historical Performance

In summary, Sharpline Broadc has experienced strong top-line growth over the last financial year, nearly doubling its sales. However, this growth has been accompanied by rising costs and margin pressures, resulting in a decline in net profitability and earnings per share. The company’s balance sheet expanded significantly, with increased current assets and liabilities reflecting its operational scale-up. While debt levels have been managed with a reduction in long-term and short-term borrowings, cash flow from operations has weakened due to working capital demands.

Investors should weigh the company’s impressive revenue growth against the challenges of margin compression and cash flow constraints. The stable book value per share and improved cash position provide some financial comfort, but ongoing cost management and operational efficiency will be critical for Sharpline Broadc to sustain profitability and deliver shareholder value in the coming years.

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