Revenue and Profitability Trends
Examining the company's net sales from fiscal year ending March 2019 through March 2025, Sparkle GoldRock experienced notable volatility. Sales peaked at ₹7.45 crores in March 2019 before declining to ₹1.93 crores by March 2022. However, the latest fiscal year ending March 2025 saw a rebound to ₹9.00 crores, indicating a potential recovery in top-line performance. Other operating income remained negligible throughout this period, with no significant contributions recorded.
Despite the revenue fluctuations, the company has struggled to maintain profitability. Operating profit before depreciation and interest (PBDIT) excluding other income was positive only in March 2019 at ₹0.32 crores but turned negative in subsequent years, reaching a low of -₹0.50 crores in March 2021. The inclusion of other income provided some relief, notably in March 2024 when operating profit rose to ₹3.22 crores, yet this was an outlier in an otherwise challenging profitability landscape. The latest fiscal year ended March 2025 recorded an operating loss of ₹0.19 crores.
Profit after tax (PAT) mirrored this trend, with a positive ₹0.38 crores in March 2019 but consistent losses in most years thereafter. The fiscal year ending March 2024 was an exception, showing a PAT of ₹3.21 crores, likely influenced by non-operating factors. The most recent year, March 2025, saw a PAT loss of ₹0.25 crores. Earnings per share (EPS) followed a similar pattern, swinging from a positive 0.85 in 2019 to a negative 0.56 in 2025, reflecting the company's ongoing challenges in generating shareholder returns.
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Cost Structure and Margins
The company's cost of raw materials and purchases has been a significant component of total expenditure. Raw material costs decreased from ₹6.54 crores in 2019 to ₹1.64 crores in 2022, before being replaced by a substantial purchase of finished goods amounting to ₹8.72 crores in 2025. Other expenses have remained relatively stable, fluctuating between ₹0.27 crores and ₹0.80 crores over the years.
Operating profit margins excluding other income have been predominantly negative, with the highest margin recorded at 4.3% in 2019. The margin deteriorated to -8.8% in 2021 and improved slightly to -2.89% in 2025. Similarly, the gross profit margin followed this pattern, peaking at 5.5% in 2019 and declining to negative territory in subsequent years. PAT margins also reflected these trends, with a positive 5.1% in 2019 but negative margins in most years, including -2.78% in 2025.
Balance Sheet and Financial Position
On the balance sheet front, Sparkle GoldRock's shareholder funds have shown a gradual recovery. After being negative for several years, shareholder funds turned positive at ₹1.12 crores in March 2025, up from ₹1.37 crores in 2024 and a low of -₹1.84 crores in 2023. This improvement is partly due to a reduction in total liabilities, which declined from ₹3.12 crores in 2020 to ₹5.18 crores in 2025, reflecting a restructuring of debt and liabilities.
Long-term borrowings have decreased significantly from ₹3.21 crores in 2020 to ₹0.45 crores in 2025, indicating deleveraging efforts. Current liabilities have increased to ₹3.60 crores in 2025, driven mainly by trade payables. Total assets have contracted from ₹3.12 crores in 2020 to ₹5.18 crores in 2025, with current assets constituting the majority of the asset base. Cash and bank balances improved to ₹1.03 crores in 2025, supporting liquidity.
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Cash Flow and Investment Activity
Cash flow data indicates limited operational cash generation, with no significant inflows from operating activities recorded in recent years. The fiscal year ending March 2024 saw a cash inflow of ₹3.00 crores from investing activities, offset by ₹2.00 crores outflow from financing activities, resulting in a neutral net cash flow. Closing cash and cash equivalents improved to ₹1.00 crore in 2025, supporting the company's liquidity position despite ongoing operational challenges.
Overall, Sparkle GoldRock's historical performance reflects a company navigating through periods of revenue volatility and profitability pressures while making strides in strengthening its balance sheet and liquidity. Investors should weigh these factors carefully when considering the company's future prospects.
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