Revenue and Operating Performance Trends
Examining the net sales figures from March 2019 through March 2025 reveals a volatile pattern. The company recorded its highest sales in March 2019 at ₹41.17 crores, followed by a general decline with intermittent recoveries. Notably, sales dropped to ₹17.23 crores in March 2021, reflecting a challenging period, before rebounding to ₹27.68 crores by March 2025. Total operating income mirrored this trend, as other operating income remained consistently nil throughout the period.
Cost management has been a critical factor in the company’s operating results. Raw material costs remained minimal, while purchase of finished goods constituted the largest expenditure, peaking at ₹34.00 crores in March 2019 and declining to ₹15.86 crores by March 2025. Employee costs showed a steady increase from ₹1.73 crores in March 2021 to ₹2.81 crores in March 2025, indicating gradual workforce expansion or wage inflation. Other expenses also rose moderately over the years.
Operating profit before depreciation and interest (PBDIT) excluding other income improved from ₹1.91 crores in March 2021 to ₹4.02 crores in March 2025, demonstrating enhanced operational efficiency despite fluctuating sales. The operating profit margin (excluding other income) peaked at 17.32% in March 2024 but moderated to 14.52% in March 2025, reflecting some margin pressure.
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Profitability and Earnings Analysis
Profit before tax (PBT) and profit after tax (PAT) figures illustrate a recovery from losses incurred in the fiscal years ending March 2021 and 2022. The company posted negative PBT in those years, with losses of approximately ₹0.97 crores and ₹0.95 crores respectively. However, by March 2025, PBT returned to a positive ₹1.26 crores, while PAT improved to ₹0.87 crores, signalling a return to profitability.
Earnings per share (EPS) followed a similar trajectory, with negative values in 2021 and 2022, before recovering to ₹1.54 in March 2025. The PAT margin also rebounded from a low of -4.53% in March 2021 to a positive 3.0% in March 2025, underscoring the company’s improved bottom-line performance.
Interest expenses remained relatively stable, averaging around ₹2 crores annually, which, combined with depreciation costs, impacted gross profit margins. Despite these costs, gross profit margin improved from negative territory in 2021 to 7.88% in March 2025, reflecting better cost control and pricing power.
Balance Sheet and Financial Position
Solid Stone Co’s balance sheet reveals a steady increase in shareholder’s funds from ₹20.94 crores in March 2021 to ₹22.38 crores in March 2025. Reserves have also grown consistently, indicating retained earnings accumulation. The company’s total liabilities rose modestly to ₹52.01 crores by March 2025, with total debt stabilising around ₹17.33 crores.
Long-term borrowings decreased from a peak of ₹8.22 crores in March 2022 to ₹4.68 crores in March 2025, suggesting deleveraging efforts. Conversely, short-term borrowings increased slightly, reflecting working capital financing needs. Net block of fixed assets showed an upward trend, reaching ₹3.71 crores in March 2025, signalling ongoing capital investment.
Current assets remained robust, with inventories rising to ₹30.41 crores and short-term loans and advances increasing to ₹10.67 crores by March 2025. Cash and bank balances, however, remained minimal throughout the period, indicating limited liquidity buffers.
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Cash Flow and Operational Efficiency
Cash flow from operating activities has shown a steady increase, rising from ₹1 crore in March 2021 to ₹4 crores in March 2025. This improvement aligns with the company’s return to profitability and better working capital management. Investing activities reflected modest outflows, primarily in the latest fiscal year, consistent with capital expenditure trends.
Financing activities have seen net outflows, indicating debt repayments or shareholder distributions. Despite these movements, the company maintained a neutral net cash inflow/outflow position, with closing cash and cash equivalents effectively at zero throughout the period.
Overall, Solid Stone Co’s historical performance depicts a company that has navigated through periods of financial stress and losses, but has demonstrated resilience by returning to profitability and strengthening its balance sheet. Investors should note the volatility in sales and margins, balanced by improving operational cash flows and deleveraging efforts.
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