Revenue Growth and Operating Income Trends
Over the four-year period ending March 2018, Sujala Trading & saw its net sales rise significantly from ₹0.56 crore in 2015 to ₹7.96 crore in 2018. This represents a remarkable expansion in top-line revenue, reflecting the company’s ability to scale its operations. Total operating income, which includes other operating income, also followed a similar upward trend, increasing from ₹2.24 crore in 2015 to ₹7.96 crore in 2018. Notably, other operating income declined over the years, from ₹1.68 crore in 2015 to nil in 2018, indicating a shift in the company’s revenue composition towards core sales activities.
Cost Structure and Expenditure Analysis
The company’s expenditure profile reveals some interesting dynamics. Purchase of finished goods fluctuated considerably, peaking at ₹11.80 crore in 2017 before dropping sharply to ₹2.07 crore in 2018. This volatility may suggest changes in inventory management or sourcing strategies. The (increase)/decrease in stocks also showed significant swings, with a positive ₹5.46 crore in 2018 contrasting with a negative ₹5.21 crore in 2017. Employee costs remained relatively stable, hovering around ₹0.14 to ₹0.20 crore annually, while manufacturing expenses showed a slight increase from ₹0.10 crore in 2015 to ₹0.12 crore in 2018. Overall, total expenditure excluding depreciation rose from ₹1.88 crore in 2015 to ₹7.79 crore in 2018, in line with the growth in operating income.
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Profitability and Margins
Operating profit before depreciation, interest and tax (PBDIT) excluding other income showed a decline from ₹0.36 crore in 2015 to ₹0.17 crore in 2018, indicating margin pressure despite revenue growth. Operating profit margin decreased sharply from 16.03% in 2015 to 2.14% in 2018. Similarly, gross profit margin contracted from 4.82% to 2.19% over the same period. Profit after tax (PAT) increased from ₹0.07 crore in 2015 to ₹0.12 crore in 2018, with PAT margin narrowing from 3.21% to 1.55%. Earnings per share (EPS) improved steadily from ₹0.13 in 2015 to ₹0.21 in 2018, reflecting incremental profitability on a per-share basis.
Cash Flow and Financial Stability
Cash flow from operating activities exhibited considerable volatility. It was robust at ₹9.50 crore in 2015 but turned negative at -₹0.02 crore in 2017 before recovering slightly to ₹0.19 crore in 2018. Changes in working capital contributed significantly to these fluctuations, with a large positive adjustment of ₹9.40 crore in 2015 and a smaller positive ₹0.06 crore in 2018. Cash flow from investing activities remained minimal, while financing activities showed outflows in 2015 and 2016, stabilising to zero in subsequent years. The company’s closing cash and cash equivalents stood at ₹0.46 crore in 2018, up from ₹0.28 crore in 2017, indicating a modest improvement in liquidity.
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Equity and Reserves
The company’s equity capital remained constant at ₹5.72 crore throughout the period, with a face value of ₹10 per share. Reserves were reported at ₹9.85 crore in 2016 and ₹9.72 crore in 2015, but no reserves were recorded in 2017 and 2018, which may indicate accounting adjustments or reclassifications. Public shareholding and pledged promoter holdings were consistently zero, suggesting a closely held ownership structure.
Summary of Historical Performance
In summary, Sujala Trading & has experienced significant revenue growth from a modest base, accompanied by steady improvements in net profit and earnings per share. However, the company’s profitability margins have contracted over time, reflecting increased costs or pricing pressures. Cash flow patterns have been uneven, with operating cash flow turning negative in some years but recovering thereafter. The stable equity base and modest cash reserves provide a foundation for ongoing operations, though the absence of public shareholding points to limited market liquidity. Investors should weigh the company’s growth potential against margin compression and cash flow variability when considering its prospects.
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