Revenue and Profitability Trends
Over the seven-year period ending March 2025, Shiva Global's net sales exhibited notable volatility. The company reached its peak revenue in the fiscal year ending March 2022, with total operating income surpassing ₹638 crores. However, subsequent years saw a marked decline, with revenue falling to approximately ₹380 crores by March 2025. This downward trend reflects challenges in maintaining sales momentum after the 2022 peak.
Profitability mirrored this pattern. Operating profit before other income (PBDIT excl. OI) peaked at nearly ₹35.9 crores in March 2022 but plunged to a marginal ₹2.9 crores in March 2025. The fiscal year ending March 2024 was particularly difficult, registering a negative operating profit, signalling operational headwinds. Despite a modest recovery in March 2025, the operating margin remained subdued at under 1%, a significant drop from the 5.45% margin recorded in 2022.
Net profit followed a similar trajectory, with consolidated net profit peaking at nearly ₹16 crores in March 2022 before declining sharply to just over ₹3 crores in March 2025. The company experienced a loss in the fiscal year ending March 2024, reflecting the impact of elevated interest expenses and exceptional items. Earnings per share (EPS) also fluctuated accordingly, reaching a high of nearly ₹16 in 2022 before falling to around ₹3.3 in 2025.
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Cost Structure and Margins
Shiva Global's cost of raw materials and purchases has consistently constituted the bulk of its expenditure, with raw material costs ranging from ₹260 crores to over ₹450 crores in peak years. The company managed to reduce raw material costs in recent years, aligning with lower sales volumes. Employee costs remained relatively stable, increasing modestly over the years, while other expenses showed a declining trend from over ₹54 crores in 2022 to around ₹25.5 crores in 2025.
Despite these cost controls, the gross profit margin contracted significantly, falling from 4.51% in 2022 to just 1.34% in 2025. This compression highlights the pressure on pricing and operational efficiency. Interest expenses surged notably in 2024, reaching ₹12.5 crores, before easing to ₹7.8 crores in 2025, impacting profitability and cash flows.
Balance Sheet and Financial Position
The company's balance sheet reflects a reduction in total liabilities from nearly ₹310 crores in 2023 to ₹168 crores in 2025, indicating efforts to deleverage. Long-term borrowings fluctuated but remained significant, with a slight increase to ₹15.5 crores in 2025. Short-term borrowings saw a sharp decline from over ₹113 crores in 2023 to ₹32 crores in 2025, signalling improved liquidity management.
Shareholders' funds decreased from ₹111 crores in 2023 to ₹89 crores in 2025, consistent with lower retained earnings due to reduced profitability. The book value per share adjusted accordingly, declining from ₹111 in 2023 to ₹89 in 2025. Total assets contracted from ₹310 crores in 2023 to ₹168 crores in 2025, reflecting asset sales or depreciation.
Cash Flow Analysis
Cash flow from operating activities has been volatile, with positive inflows in some years and negative in others. The fiscal year ending March 2025 saw a modest operating cash inflow of ₹3 crores, a recovery from negative cash flows in prior years. Investing activities contributed positively in 2025 with ₹11 crores inflow, contrasting with outflows in earlier years. Financing activities consistently showed outflows in recent years, reflecting debt repayments and reduced borrowings.
Overall, the net cash position remained relatively stable, with minor fluctuations around zero, indicating tight cash management amid operational challenges.
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Summary and Outlook
Shiva Global's historical performance over the past seven years has been characterised by significant fluctuations in revenue and profitability, with a peak in fiscal 2022 followed by a sharp decline. The company has faced margin pressures and elevated interest costs, which have weighed on net profits and cash flows. However, recent efforts to reduce debt and improve liquidity are positive signs for financial stability.
Investors should note the volatility in earnings and the challenges in sustaining growth amid a competitive environment. The company's ability to manage costs and optimise its capital structure will be critical in shaping future performance. While the latest fiscal year shows some recovery in profitability and cash flow, cautious monitoring of operational efficiency and market conditions remains essential.
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