How has been the historical performance of SP Apparels?

Revenue and Profit Growth

Over the past six years, SP Apparels’ net sales have shown a consistent upward trend, rising from ₹652.31 crores in March 2021 to ₹1,395.13 crores in March 2025. This represents more than a twofold increase in top-line revenue, underscoring the company’s successful market penetration and demand growth. The operating profit (PBDIT) excluding other income also improved from ₹104.35 crores in March 2021 to ₹187.81 crores in March 2025, indicating enhanced operational efficiency despite rising raw material and employee costs.

Profit after tax (PAT) has mirrored this positive momentum, climbing from ₹43.17 crores in March 2021 to ₹95.10 crores in March 2025. Earnings per share (EPS) have nearly doubled in the same period, reaching ₹37.92 in the latest fiscal year. However, the operating profit margin has seen some compression, declining from 16.0% in March 2021 to 13.46% in March 2025, reflecting increased cost pressures and competitive market conditions.

Balance Sheet and Asset Quality

SP Apparels’ balance sheet has strengthened considerably, with shareholder’s funds rising from ₹558.38 crores in March 2021 to ₹856.34 crores in March 2025. The company’s reserves have also expanded, reaching ₹830.88 crores, which provides a solid cushion for future growth and risk mitigation. The net block of fixed assets increased steadily to ₹572.86 crores, reflecting ongoing investments in capacity expansion and modernisation.

Current assets have grown in tandem, with inventories and sundry debtors rising to ₹370.72 crores and ₹250.75 crores respectively by March 2025. Despite this growth, net current assets remain healthy at ₹232.31 crores, indicating effective working capital management. Total liabilities have increased but remain proportionate to asset growth, with total debt notably reduced to zero in the latest fiscal year, signalling a strong deleveraging effort.

Cash Flow and Financial Health

Cash flow from operating activities has fluctuated over the years but remained positive, with ₹44 crores generated in March 2025. The company has invested heavily in capital expenditure, as seen in the negative cash flow from investing activities amounting to ₹170 crores in the latest year. Financing activities have contributed positively with ₹82 crores inflow, supporting expansion and debt repayment. However, the net cash position declined to ₹35 crores by March 2025 from ₹78 crores the previous year, reflecting the capital-intensive nature of the business.

Overall, SP Apparels has maintained a solid financial footing with improving profitability, expanding asset base, and prudent debt management. The company’s ability to grow revenues while managing costs and investing in capacity bodes well for its future prospects.

Summary of Historical Performance

SP Apparels has exhibited a commendable growth pattern over the last several years. The company’s net sales surged by over 113% from March 2021 to March 2025, supported by rising demand and operational scale. Profitability metrics such as PAT and EPS have nearly doubled, reflecting improved margins and cost control despite some margin pressure. The balance sheet shows a healthy increase in net worth and reserves, alongside a significant reduction in debt, enhancing financial stability.

Capital investments have been substantial, indicating a focus on long-term growth, while cash flow management remains cautious but positive. The company’s operating profit margins, though slightly compressed, remain respectable within the competitive garments sector. Overall, SP Apparels’ historical performance underscores its resilience and capacity to expand sustainably in a dynamic market environment.

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