Revenue and Profitability Trends
In the fiscal year ending March 2025, Silgo Retail reported consolidated net sales of ₹44.37 crores, reflecting its operational scale within the retail sector. The company’s total operating income matched this figure, with no additional operating income recorded. Operating profit before depreciation, interest, and tax (PBDIT) stood at ₹6.27 crores, yielding an operating profit margin of approximately 14.1%. This margin indicates a reasonable level of operational efficiency given the raw material costs and other expenses involved.
Profit before tax was ₹6.07 crores, after accounting for interest expenses of ₹0.18 crores and depreciation of ₹0.03 crores. The net profit after tax was ₹4.48 crores, translating to a profit after tax margin of 10.1%. Earnings per share (EPS) for the year was ₹2.42, with a diluted EPS slightly higher at ₹2.45, reflecting stable earnings attributable to shareholders.
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Balance Sheet Strength and Capital Structure
Silgo Retail’s balance sheet reveals a consistent increase in shareholder’s funds, rising from ₹17.68 crores in March 2020 to ₹58.44 crores by March 2025. This growth is supported by a steady increase in reserves, which climbed from ₹11.01 crores to ₹39.95 crores over the same period. The company’s equity capital also expanded, reflecting possible equity infusions or share issuances, moving from ₹6.67 crores in 2020 to ₹18.50 crores in 2025.
Importantly, the company has successfully reduced its total debt burden, with total debt declining from ₹8.00 crores in March 2020 to zero by March 2025. This deleveraging trend enhances financial stability and reduces interest obligations, which were modest at ₹0.18 crores in the latest fiscal year. The book value per share has improved from ₹18.19 in 2020 to ₹31.60 in 2025, signalling enhanced net asset value per share for investors.
Asset and Liability Management
On the asset side, Silgo Retail’s total assets increased from ₹26.92 crores in 2020 to ₹64.41 crores in 2025, driven primarily by growth in current assets. Inventories have notably expanded from ₹15.99 crores to ₹59.56 crores, indicating either increased stockholding or expansion in product offerings. Sundry debtors have fluctuated, with a decline to ₹1.33 crores in 2025 from a peak of ₹16.49 crores in 2023, suggesting improved receivables management. Cash and bank balances, however, have decreased sharply to ₹0.85 crores in 2025 from ₹8.62 crores in 2024, reflecting changes in liquidity or working capital utilisation.
Current liabilities have also reduced significantly from ₹9.20 crores in 2020 to ₹5.83 crores in 2025, consistent with the company’s overall deleveraging strategy. Non-current liabilities have diminished from ₹0.04 crores to ₹0.14 crores, indicating minimal long-term obligations.
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Cash Flow and Operational Efficiency
Cash flow analysis reveals some challenges in working capital management. While profit before tax has steadily increased from ₹2.00 crores in 2020 to ₹6.00 crores in 2025, cash flow from operating activities has been volatile. The company experienced negative cash flow from operations in earlier years, notably in 2020 and 2021, with outflows of ₹13 crores and ₹14 crores respectively. However, by 2024 and 2025, operating cash flows stabilised, though the latest year recorded a neutral cash flow from operations.
Changes in working capital have consistently been negative, indicating increased investment in inventory or receivables. Financing activities show a net outflow of ₹7 crores in 2025, contrasting with inflows in prior years, reflecting repayment of borrowings or reduced reliance on external funding.
Outlook and Considerations
Overall, Silgo Retail’s historical performance reflects a company that has grown its revenue base and profitability while strengthening its balance sheet by reducing debt and increasing shareholder equity. The improvement in profit margins and book value per share are positive indicators for investors. However, the company’s working capital management and cash flow generation remain areas to monitor closely, given the fluctuations observed in recent years.
Investors should weigh these factors alongside sector trends and market conditions when considering Silgo Retail’s stock for their portfolios.
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