How has been the historical performance of Sungold Capital?

Revenue and Operating Income Trends

Examining Sungold Capital’s net sales reveals a generally upward trajectory, with figures rising from ₹0.92 crore in March 2013 to ₹1.29 crore by March 2015. Although there was a slight dip in March 2014 compared to March 2012, the overall trend indicates a recovery and growth in core sales. Other operating income, while relatively minor, increased notably in the latest fiscal year, contributing to total operating income of ₹1.53 crore in March 2015, up from ₹0.93 crore in March 2013.

Operating expenses excluding depreciation have fluctuated, with a peak of ₹1.14 crore in March 2012 and a reduction to ₹1.02 crore by March 2015. Employee costs have risen steadily, reflecting possible expansion or increased workforce investment, reaching ₹0.53 crore in the latest year. Manufacturing expenses showed some volatility but remained a significant component of total expenditure.

Profitability and Margins

Sungold Capital’s operating profit before depreciation and interest (PBDIT) has shown a marked improvement, rising from ₹0.04 crore in March 2012 to ₹0.51 crore in March 2015. This growth is reflected in the operating profit margin, which surged from a modest 3.16% to an impressive 33.05% over the same period. Such an increase suggests enhanced operational efficiency or favourable market conditions.

Profit before tax followed a similar upward trend, increasing from ₹0.03 crore to ₹0.48 crore, while profit after tax rose from ₹0.02 crore to ₹0.41 crore. Correspondingly, the profit after tax margin expanded significantly, reaching 26.52% in March 2015 compared to just 1.62% in March 2012. Earnings per share (EPS) also improved, from ₹0.01 to ₹0.17, indicating growing returns for shareholders.

Capital Structure and Reserves

The company’s equity capital increased from ₹14.08 crore in March 2012 to ₹24.44 crore in March 2015, signalling possible equity infusion or share issuance to support growth. Reserves have also grown steadily, from ₹1.51 crore to ₹4.39 crore, reflecting accumulated retained earnings and strengthening the company’s financial base.

Cash Flow Dynamics

Cash flow from operating activities has been volatile, with negative cash flows recorded in March 2012, 2013, and 2015, contrasted by a positive inflow in March 2014. The negative cash flow in the latest year, amounting to ₹6.53 crore, was influenced by significant changes in working capital. Investing activities showed a positive cash flow of ₹3.97 crore in March 2015, reversing prior years’ outflows, while financing activities contributed ₹2.65 crore, supporting liquidity.

Despite fluctuations, the net cash inflow remained positive in the latest fiscal year at ₹0.09 crore, with closing cash and cash equivalents rising to ₹0.29 crore. This suggests cautious but improving cash management amid operational challenges.

Summary of Historical Performance

Overall, Sungold Capital’s historical performance from 2012 to 2015 reflects a company on a growth path, with improving sales, profitability, and shareholder returns. The substantial rise in operating and net profit margins indicates enhanced operational control and cost management. The increase in equity capital and reserves supports a stronger financial foundation, while cash flow patterns highlight areas for working capital optimisation.

Investors analysing Sungold Capital should note the steady improvement in earnings per share and profit margins, which may signal potential for future growth. However, the volatility in cash flows and working capital changes warrants attention to liquidity management. The company’s consistent public shareholding and absence of pledged promoter shares add to its governance appeal.

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