How has been the historical performance of Spice LoungeFood?

Revenue and Profitability Overview

For the fiscal year ending March 2025, Spice LoungeFood reported net sales of ₹0.66 crore, with no additional operating income. The total operating income thus stood at ₹0.66 crore. Notably, the company incurred no raw material or finished goods purchase costs, indicating a unique cost structure or business model possibly focused on services or minimal inventory turnover.

Employee costs accounted for ₹0.17 crore, while other expenses amounted to ₹0.23 crore, culminating in total expenditure excluding depreciation of ₹0.40 crore. This resulted in an operating profit (PBDIT) of ₹0.26 crore, reflecting an operating profit margin of 39.4%, which is commendable given the small revenue base.

After accounting for tax expenses of ₹0.07 crore, Spice LoungeFood posted a consolidated net profit of ₹0.19 crore, translating to a profit after tax margin of 28.8%. Earnings per share were modest, with a diluted EPS of ₹0.08, reflecting the company's equity capital of ₹69.71 crore and a face value of ₹1 per share.

Balance Sheet and Financial Position

Spice LoungeFood's balance sheet as of March 2025 reflects shareholder funds of ₹108.71 crore, comprising equity capital of ₹69.71 crore and reserves of ₹39 crore. The company reported no long-term or short-term borrowings, indicating a debt-free status which enhances financial stability and reduces risk.

Total liabilities stood at ₹199.82 crore, with non-current liabilities amounting to ₹61.42 crore and current liabilities at ₹111.09 crore. The presence of other long-term liabilities and provisions suggests ongoing obligations, but the absence of debt is a positive sign for creditors and investors alike.

On the asset side, the company holds net block assets valued at ₹120.19 crore after depreciation, alongside capital work in progress of ₹1.41 crore. Non-current assets totalled ₹177.45 crore, including long-term loans and advances of ₹12.34 crore. Current assets were ₹24.75 crore, primarily comprising sundry debtors and inventories, with cash and bank balances at ₹2.44 crore.

Cash Flow and Operational Efficiency

Cash flow statements indicate a profit before tax of ₹5 crore, adjusted by ₹8 crore in non-cash items or other adjustments. Changes in working capital resulted in an outflow of ₹11 crore, but the company still managed a positive cash flow from operating activities of ₹2 crore. Investing activities contributed an inflow of ₹3 crore, while financing activities saw an outflow of ₹4 crore, culminating in a net cash inflow of ₹1 crore for the year.

The closing cash and cash equivalents stood at ₹2 crore, up from zero at the start of the year, signalling improved liquidity. The absence of debt and positive cash flow generation underscore the company’s prudent financial management despite its relatively small scale of operations.

Summary and Investor Considerations

Spice LoungeFood’s historical performance, as reflected in its latest annual results, shows a company operating on a modest revenue base but maintaining strong profitability margins. The operating profit margin of nearly 40% and a net profit margin close to 29% are indicators of efficient cost control and operational discipline.

The company’s balance sheet is marked by a debt-free status and a solid equity base, which provides a cushion for future growth or investment. However, the relatively low sales figure and limited scale suggest that investors should weigh the company’s growth prospects carefully against its current financial metrics.

Cash flow management appears sound, with positive operating cash flow and a net increase in cash reserves. This liquidity position, combined with the absence of borrowings, reduces financial risk and supports ongoing operations.

Overall, Spice LoungeFood presents a stable financial profile with efficient operations, but its small scale and limited public shareholding may warrant cautious consideration by investors seeking growth or liquidity.

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