How has been the historical performance of Superhouse Ltd?

Revenue and Profit Trends

Superhouse Ltd’s net sales have demonstrated variability, peaking in the fiscal year ending March 2023 before moderating in subsequent years. The company recorded net sales of approximately ₹765.99 crores in March 2023, which declined to ₹664.99 crores by March 2025. This decline reflects a challenging market environment or operational adjustments. Despite this, the total operating income remained consistent with net sales figures, as the company reported no other operating income during this period.

Operating profit before depreciation, interest, and tax (PBDIT) excluding other income also followed a downward trajectory from ₹58.98 crores in March 2019 to ₹32.38 crores in March 2025. Including other income, operating profit stood at ₹44.53 crores in March 2025, down from a high of ₹70.44 crores in March 2022. This decline in operating profit margins, which fell from 9.3% in March 2021 to 5.06% in March 2025, suggests rising costs or pricing pressures.

Profitability and Margins

The company’s profit before tax (PBT) has seen a significant reduction from ₹42.46 crores in March 2022 to ₹11.66 crores in March 2025. Correspondingly, profit after tax (PAT) declined from ₹31.43 crores to ₹7.66 crores over the same period. The consolidated net profit followed a similar trend, dropping from ₹35.55 crores in March 2022 to ₹9.11 crores in March 2025.

Margins have compressed notably, with the PAT margin decreasing from 4.98% in March 2022 to a modest 1.2% in March 2025. Earnings per share (EPS) also reflected this downturn, falling from 32.23 in March 2022 to 8.47 in March 2025. These figures indicate that while the company remains profitable, its earnings power has been under pressure in recent years.

Cost Structure and Expenditure

Examining the cost components reveals that raw material costs have fluctuated, peaking at ₹355.38 crores in March 2023 before easing to ₹286.13 crores in March 2025. Employee costs have steadily increased from ₹46.56 crores in March 2021 to ₹83.68 crores in March 2025, reflecting possible wage inflation or workforce expansion. Other expenses also rose from ₹106.70 crores in March 2021 to ₹158.69 crores in March 2025, contributing to the overall increase in total expenditure, which stood at ₹632.61 crores in March 2025.

Balance Sheet and Financial Position

Superhouse Ltd’s total assets have grown from ₹670.90 crores in March 2021 to ₹855.74 crores in March 2025, indicating expansion or asset accumulation. Shareholders’ funds increased from ₹380.81 crores to ₹456.55 crores over the same period, supported by rising reserves. The company’s book value per share improved from ₹345.40 in March 2021 to ₹424.71 in March 2025, signalling enhanced net asset value per share.

However, the company’s total debt also rose from ₹144.91 crores in March 2021 to ₹211.18 crores in March 2025, with short-term borrowings constituting the majority. This increase in leverage may impact financial flexibility and interest costs, which have risen from ₹11.32 crores in March 2021 to ₹20.99 crores in March 2025.

Cash Flow and Liquidity

Cash flow from operating activities has been inconsistent, with a peak of ₹84 crores in March 2021 but declining to ₹16 crores by March 2025. Investing activities consistently showed cash outflows, reflecting ongoing capital expenditure or investments. Financing activities have varied, with net outflows of ₹14 crores in March 2025, indicating repayments or dividend payments.

Closing cash and cash equivalents have decreased from ₹34 crores in March 2021 to ₹13 crores in March 2025, suggesting tighter liquidity. The company’s net current assets have improved from ₹161.96 crores in March 2021 to ₹205.83 crores in March 2025, indicating a stronger short-term financial position despite the cash reduction.

Outlook and Considerations

Overall, Superhouse Ltd has experienced a period of revenue and profit contraction after a peak in fiscal 2023. Rising costs, increased borrowings, and compressed margins have challenged profitability. Nonetheless, the company maintains a solid asset base and improving net worth, which could support future growth initiatives. Investors should weigh these factors alongside market conditions and sector dynamics when assessing Superhouse Ltd’s prospects.

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