Revenue Growth and Operating Performance
Stove Kraft’s net sales have shown a steady upward trend, rising from ₹640.94 crores in March 2019 to ₹858.96 crores by March 2021. This represents a compound growth rate of approximately 15.5% annually, reflecting the company’s expanding market presence and product acceptance. The total operating income mirrors this growth, as other operating income remained nil during this period.
On the cost front, raw material expenses increased in line with sales, reaching ₹442.42 crores in March 2021 from ₹317.54 crores in March 2019. Purchase of finished goods and other expenses remained relatively stable, while employee costs saw a moderate rise, indicating controlled operational scaling. Total expenditure excluding depreciation rose from ₹611.11 crores in 2019 to ₹745.92 crores in 2021, consistent with the revenue expansion.
Operating profit before depreciation and interest (PBDIT) surged impressively from ₹29.83 crores in March 2019 to ₹114.59 crores in March 2021, with the operating profit margin expanding from 4.65% to 13.16%. This improvement underscores enhanced operational efficiency and better cost management.
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Profitability and Earnings Metrics
Stove Kraft’s profit before tax (PBT) witnessed a dramatic rise from ₹1.22 crores in March 2019 to ₹81.46 crores in March 2021. Correspondingly, profit after tax (PAT) increased from a modest ₹0.74 crores to ₹81.46 crores over the same period. This leap is reflected in the PAT margin, which improved from a negligible 0.12% to a robust 9.48%, signalling a strong turnaround in bottom-line performance.
Earnings per share (EPS) also followed this positive trend, climbing from ₹0.30 in 2019 to ₹24.99 in 2021, indicating substantial value creation for shareholders. The company reported no extraordinary or exceptional items during these years, suggesting that the profit growth is primarily driven by core business improvements.
Balance Sheet Strength and Debt Reduction
Stove Kraft’s balance sheet has strengthened considerably. Shareholder’s funds swung from a negative ₹63.95 crores in March 2019 to a positive ₹301.45 crores in March 2021, supported by a significant increase in reserves from negative ₹88.66 crores to ₹267.14 crores. This turnaround reflects retained earnings and capital infusion, enhancing the company’s net worth.
Notably, the company has substantially reduced its total debt from ₹309.97 crores in 2019 to ₹50.46 crores in 2021. Long-term borrowings decreased sharply, indicating improved financial discipline and deleveraging efforts. Current liabilities also declined, contributing to a healthier financial position.
On the asset side, net block assets increased steadily, reflecting ongoing capital investments. Current assets rose from ₹233.69 crores to ₹315.56 crores, with inventories and short-term loans and advances showing notable growth. The company’s net current assets turned positive in 2021, a marked improvement from previous years’ negative position.
Cash Flow Trends
Cash flow from operating activities improved significantly, rising from ₹13 crores in 2019 to ₹109 crores in 2021. This strong cash generation supports the company’s investment and debt repayment activities. Investing activities showed increased outflows, consistent with capital expenditure, while financing activities reflected net repayments of borrowings.
Overall, Stove Kraft’s net cash inflow was ₹14 crores in 2021, reversing the negative cash flow of previous years. The closing cash and bank balance nearly doubled from ₹19.41 crores in 2020 to ₹37.35 crores in 2021, enhancing liquidity.
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Summary of Historical Performance
In summary, Stove Kraft has transitioned from a financially stressed position in 2019 to a profitable and financially stable company by 2021. The company’s revenue growth, improved operating margins, and substantial profit increase highlight operational success. The marked reduction in debt and positive shareholder equity reflect a strengthened balance sheet, while robust cash flow generation underpins sustainable business operations.
Investors analysing Stove Kraft’s historical performance will note the company’s ability to enhance profitability while managing costs and liabilities effectively. The upward trajectory in earnings per share and operating margins suggests a well-executed growth strategy, positioning Stove Kraft favourably within the competitive electronics and appliances sector.
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