Revenue and Profit Trends
Examining Shree Bhavya's net sales over the past seven years, the company experienced its peak revenue in the fiscal year ending March 2019, with net sales reaching ₹238.88 crores. Subsequently, revenues declined notably in the following years, hitting a low of ₹144.82 crores in March 2021. However, a recovery phase ensued, with net sales rising to ₹184.68 crores by March 2025. This rebound indicates a partial restoration of market demand or operational efficiency after a period of contraction.
Operating profit margins, excluding other income, have generally hovered between 5% and 6.2%, with a slight dip to 4.81% in March 2023. The operating profit (PBDIT) peaked at ₹12.36 crores in March 2019 but saw a decline to ₹10.87 crores by March 2025. Despite this, the company maintained positive operating profitability throughout the period, signalling operational resilience amid revenue fluctuations.
Profit after tax (PAT) has shown a gradual improvement from a marginal ₹0.03 crores in March 2021 to ₹2.35 crores in March 2025. The PAT margin similarly improved from a low of 0.02% to 1.27% over the same timeframe, reflecting better cost management or favourable market conditions. Earnings per share (EPS) followed this upward trajectory, rising from a mere 0.03 in March 2021 to 2.47 in March 2025, enhancing shareholder value.
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Cost Structure and Expenditure
Raw material costs have been a significant component of total expenditure, decreasing from ₹155.07 crores in March 2019 to ₹93.26 crores in March 2025. This reduction aligns with the revenue contraction and subsequent recovery. Other expenses, however, increased from ₹46.58 crores in March 2021 to ₹78.47 crores in March 2025, indicating rising operational costs or investments in other areas.
Interest expenses have remained relatively stable, averaging around ₹7 crores annually, which suggests consistent debt servicing costs. Depreciation charges have gradually decreased from ₹2.13 crores in March 2019 to ₹1.09 crores in March 2025, possibly reflecting asset ageing or changes in capital expenditure.
Balance Sheet and Financial Position
Shree Bhavya's shareholder funds have steadily increased from ₹29.01 crores in March 2020 to ₹35.35 crores in March 2025, supported by rising reserves. The company's total liabilities have also grown, reaching ₹160.28 crores in March 2025, with total debt increasing to ₹64.28 crores. This indicates a moderate leverage position that has been managed over the years.
On the asset side, net block values have remained stable around ₹11-12 crores, while current assets have increased to ₹147.64 crores by March 2025, reflecting improved liquidity and working capital management. Inventories and sundry debtors have also risen, consistent with higher sales volumes in recent years.
Cash Flow Overview
Cash flow from operating activities has shown variability, with a peak of ₹18 crores in March 2022 and a more modest ₹2 crores in March 2025. Investing activities have generally been negative or neutral, indicating limited capital expenditure or asset acquisitions. Financing activities have seen outflows in recent years, suggesting debt repayments or reduced borrowings. Overall, the company has maintained a positive net cash inflow, albeit at a modest level.
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Summary of Historical Performance
In summary, Shree Bhavya's historical performance reflects a company that has navigated through periods of revenue decline and recovery with consistent operational profitability. The gradual improvement in net profit margins and earnings per share over recent years is a positive sign for investors. The balance sheet shows a stable equity base with manageable debt levels, while cash flow trends suggest prudent financial management.
Investors should note the fluctuations in sales and costs, which highlight the cyclical nature of the business environment in which Shree Bhavya operates. The company's ability to maintain profitability despite these challenges is noteworthy, though ongoing monitoring of debt levels and expense management will be crucial for sustained growth.
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